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HomeMy WebLinkAbout12-5469 GNANACHANDRA CHINNIAH : IN THE COURT OF COMMON PLEAS OF and SUGANTHINI CHINNIAH, :CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs : ~ ~ IV ~ ~ V. :CIVIL ACTION -LAW y ~ r~ --~ca s• ~c AmeriChoice Federal Credit Union em rv and DALLAS J. ZULLI : No. 2012- Defendants NOTICE You have been sued in Court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notices aze served, by entering a written appearance personally, or by attorney, and filing. in writing with the Court your defense or objections to the claims set forth against you. You are warned that if you fail to do so, the case may proceed without you, and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Baz Association ~u s~ . ~ GNANACHANDRA CHINNIAH : IN THE COURT OF COMMON PLEAS OF and SUGANTHINI CHINNIAH, :CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. :CIVIL ACTION -LAW AmeriChoice Federal Credit Union q -~~l^1 and DALLAS J. ZULLI : No. 2012-j 7 Defendants COMPLAINT AND NOW, this 4~' day of September, 2012, come the Plaintiffs, Gnana Chinniah a/k/a Gnanachandra Chinniah and Suganthini Chinniah hereby files this Complaint for Breach of Contract and in support thereof, state as follows: 1. Plaintiffs, Gnanachandra Chinniah and Suganthini Chinniah, are adult individuals who live at 506 Erford Road, Camp Hill, PA 17011, in Cumberland County. 2. Defendants, Dallas J. Zulli, VP Business Lending, and AmeriChoice Federal Credit Union are based at 2175 Bumble Bee Hollow Road, Mechanicsburg, PA 17055. 3. On or about June 13, 2012, Plaintiffs submitted their credit consolidation loan proposal for $400,000 to Dallas J. Zulli, VP Business Lending with AmeriChoice Federal Credit Union (Exhibit 1- Origit~l handwritten proposal using 3 collaterals). 4. On or about June 19, 2012, Defendant Dallas Zulli had the plaintiffs to complete an "AmeriChoice Member Credit Application" for $400,000 against three (3) residential rental properties as collaterals (Exhibit 2 -Formal Loan Application). 5. On or about June 22, 2012, Defendant Dallas Zulli wrote an email to Plaintiff Cmana Chinniah with suggestion to include more properties/loans in the loan consolidation to meet Defendant Lender's requirements, and to improve cash-flow of the Plaintiffs. 6. On or about June 25, 2012, Defendant Zulli provided a "Counter Proposal" for $1.4 million credit consolidation, taking fifteen (15) residential rental properties as collaterals, and provided a spreadsheet numbers (Exhibit 3- Spreadsheet and emails). 7. Although Plaintiffs were concerned about the "Estimated Closing Costs" of $22,365 in the spreadsheet provided, Defendant Dallas Zulli convinced the plaintiffs with the counter proposal for $1,400,000 loan which involves the cost of appraisals and title search/insurance of fifteen (15) properties, instead of three (3) properties as in the plaintiffs' original consolidation loan application for $400,000, dated June 19, 2012. 8. On or about July 7, 2012, Defendant Dallas Zulli requested the Plaintiffs to submit an "Updated Application and Personal Statement" (Exhibit 4 -Email from Zulli). 9. On or about July 9, 2012, plaintiffs submitted another "AmeriChoice Member Credit Application" for $1,400,000 at the request of Defendant Dallas Zulli, on a good faith that the counter proposal for this increased loan that requires significantly higher closing costs would serve the very purpose of the credit consolidation (Exhibit 5). l0.On or about July 10, 2012, Defendant Dallas Zu11i provided a "Commitment Letter" for loan in the amount of $1,400,000 for "Refinancing Existing Debt" (Exhibit 6). 11. On or about July 20, 2012, Plaintiffs signed the loan commitment letter and provided a check in the amount of $2,100 to AmeriChoice towards $6,300 Appraisal Cost. 12.On or about July 20, 2012, Defendant Dallas Zulli sent the signed "Commitment Letter" to Attorney Gregory Reed, Esq. and authorized the title search for closing. 13. Between July 30 and August 2, 2012 a real estate appraiser chosen by Defendant Dallas Zulli, Ms. Pamela Reitenbach, and her unidentified "assistant" conducted the inspection of the fifteen (15) residential rental properties, taking numerous pictures. 14. At the request of the appraiser, Ms. Reitenbach, Plaintiffs provided her with copies of the existing appraisal reports for the properties that included the floor plan of these properties so the appraiser can save time in measuring the individual living areas etc. 15. Plaintiffs also provided the appraisers with details as to specif c rental agreement details for each unit, utilities, and tenants specific situations to coordinate inspections. 16. Upon completion of the inspection of all of the fifteen (15) properties, on or about August 8, 2012, plaintiffs paid second installment of $2,100 towards the appraisal fee. 17. Plaintiffs have been providing all the necessary information and clarifications to Defendant Dallas Zulli, and the Closing Agent, Attorney Gregory Reed, Esq. and followed up with the status of the appraisals and settlement date (Exhibit 7- Emails). 18. On or about July 27, 2012, upon follow up phone calls and email from Plaintiff Gnana Chinniah, Defendant Dallas Zulli called the Plaintiff and stated only 10 out of 15 appraisal reports were completed; and those values were "way lower than expected values", and the balance $2,100 needed to be paid for the remaining appraisal reports' completion to see if the grand total of appraisals meets "target value of $1,750,000'. 19. When Plaintiffs questioned about the appraisal values and specifics of the reports, Defendant Zulli indicated that those collaterals were "substandard" requiring maintenance, and AmeriChoice Federal Credit Union was not going to close the loan. 20. Upon the request of the Plaintiffs for written explanation from the Defendants for their refusal to provide the loan, on or about August 30, 2012, Defendants' legal counsel, Attorney Darrel C. Dethlefs sent a letter explaining Defendants' reasons for the revocation of the loan commitment and refusal for refund $4,200 paid (Exhibit 8). 21. Plaintiffs strongly disagree with Defendants' interpretation of the ten (10) appraisal reports and their assumption that "projected grand total" of fifteen (15) appraisals would be less than the tazget value of $1,750,000 (Plaintiffs Estimate $2,190,000). 22. Defendants obtained the appraised values for only ten (10) properties that included four apartments each 2-Units, and six (6) single family residential properties totaling 14 Units out of the tota125 Units included in the fifteen (15) collateral properties. 23. Defendants or their agents have not completed the appraisal reports for the remaining two apartments each 4-Units and three single family houses including the Plaintiffs' primary residence totaling another 11 Units when Plaintiffs have paid $4,200 so faz. 24. Plaintiffs were acting on a good faith, and allege that that the defendants' refusal to complete the remaining appraisals, and to discuss options to modify the loan amount to meet their ratio of 80 percent loan to value is a serious breach of contract terms. 25. Plaintiffs allege that the appraisals reports/values should have been "manipulated" by the Defendants or their agent for the purpose of projecting a "grand total value" which is short of the tazget value of $1,750,000 for fifteen (15) collateral properties. 26. Plaintiffs have a strong evidentiary basis to prove that at least five (5) of the appraised property values are significantly lower than the Tax Assessment Values established by the Cumberland County, while the remaining five (5) values aze slightly lower. It should be noted that ratio of Tax Assessment Value to Fair Mazket Value of the properties in Cumberland County is almost 1.0 based on published data for Counties. CFxt~..b~~- 9_) 27. Plaintiffs also allege that Defendant Zulli's affiliation as a Director of Ambulance Service with East Pennsboro Township which is a Defendant in two (2) separate active lawsuits at the Cumberland County Court, and United States District Court for the Middle District of Pennsylvania is a serious conflict of interest which must have influenced his "hidden agenda" to cause significant out of pocket expenses so far. 28. Plaintiffs also allege that the appraisers' questionable conduct such as taking pictures of personal belongings of several tenants and at the primary residence of the Plaintiffs located at 506 Erford Road, Camp Hill while refusing to provide the loan or refund of the appraisal fees of $4,200 paid so faz and out of pocket expenses related to the title work by Attorney Gregory Reed etc amount to serious unfair business practices. 29. Plaintiffs also allege that the "assistant" to the Appraiser Ms. Pamela Reitenbach was very rude with the plaintiffs who also received some complaints and concerns from tenants as well, as to the purpose of numerous photos takes in each unit and how they would be disseminated or used by the Defendants or their agents, if not for this loan. 30. Plaintiffs wish to bring to the attention of the Honorable Court that at least eight (8) of the rental units for which the appraisals completed have been leased to the Housing Authority of Cumberland County and have been inspected annually and passed their inspections, and aze well maintained by the Plaintiffs as these tenants are long-term. In addition, Plaintiffs are saddened by the appraiser's failure to give any credit for the new carpeting and fresh painting at two of the rental units at the time of inspection. - 31. Defendants' attempted justification for their denial of the loan on the basis that the slightly dirty carpets/flooring/walls in few of the units where special need people live is highly regrettable, and Defendant Zulli should be ashamed as a Director of Ambulance Service who should not attempt to penalize those tolerant landlords. 32. Plaintiffs strongly allege Defendant Zulli's and AmeriChoice Federal credit Union's breach of commitment to lend the Plaintiffs on unfoundedJbaseless projection of the appraisals, and their refusal to refund $4,200 paid, when coupled with Defendant Zulli's affiliation with an another Defendant in two (2) separate lawsuits involving the Plaintiffs, are unfair, deceptive, and predatory business practice and scam that must have been premeditated and politically motivated with a small town mentality. WHEREFORE Plaintiffs respectfully requests this Honorable Court enter an order enforcing the loan commitment upon completion of the remaining appraisal reports, revising inaccurate appraisals using data from acceptable sources including tax assessments andlor independent appraisals OR fully refund the appraisal fee paid and other out of pocket and legal expenses incurred, and destroy or return all photographs and any other information obtained during the inspection of the properties as the Plaintiffs and some of their tenants have serious privacy and safety concerns. Gnanachandra Chinniah, Plaintiff r--ter--- - - - - Suganthini Chinniah, Plaintiff 506 Erford Road Camp Hill, PA 17011 (717) 732 6273 chinniahg@hotmail.com dt~ ~2c ! L 7~s _~2i 2 ~5 r2 C~ r, 4600- Q.-boos _1~.~_~,,..e~ nn.e~.~..~:~.!~ass__ v'~+-~ ~ 1 a k ' ___.__~.w _ .v_.__-. ~ ~ Lam, o©o ~r - . M _.g ~ 19s z ~ . P~-G ~r ct Gb 1~,,=1,~,,.,Q r) a /27, oa a p, ~ ) ~ ,nrt~ _ ~ 77'7_____.___._._ 3.r ~~.P -~t_-----~-`------ 3Z~.-----_._.__ ~ ono ~ 22.,x, obi ~ g 3 9 _ _ _ _ ~ _ . _ _ _ _ ~37~_ 5 s aP~,;~ _ o~'-~- G,--G.~,~:~- c~.?-,~~ - _ S 3 000 _ - ~ 4-5 0 ~ ~ (~•,,-v~C. o (~~.w•~., fit. 4? 7 t ~ 1 ao t~ ~ o a a ~ .~~__.~.v..__.~---____..__.__~. _ _ _ . __.____~~r~.~..w________ ~s I ~S ~ c f~-~ X 96g 3---_~_ $ ~ 300 _ _ ___~S_Co-<-oCrO_.. ~v1~yt.~ - ~ ~ ~ 7770. ~ ~ ~ Scs2~ _ _ _ l ~ S . ~ ~,..,.k x ~ 7 S ~ ~ as o / 2., --r~ boo - bey 8 ~-v-~.~.,.. A,~c_ u ,.,;~.~s za ~ ~7. t~gi ~s 2~3 30 ' . ~ ~ ~4 _ _ _ _ _ _ _ _ 3 1 ~ 1 w~ ~ n.e 3~ 2.rb~4 s # ~.o c~ • ~ _ _ _ - _ _7 _ . _ _ _ ~ y-~s~-~ ~ a . _ - ~ $ 362 t 1 ~7 t z2 ~ _ 77 ~ ' -34-> 6 `[-~2. 22 5 . ov _ _ . _ _7_?-~ . ~ ~~C~~ ~ ~ ~ L ~ ~ ~ ~ ~q I ~ 3~j a[7 ~ ~ a~ _ ____~_-__._____.____w_._ _ V _ _ e ~ - / ~~e__ C Schedule of Real Estate Owned by Gnana Chinniah ~ Sus~anthini Chinniah Address of Property Type of Mortgage Company or 2010 Monthly Mortgag Approx monthly Property Lien Holder Name Market Rental Payment/ Loan Equity Value Income Month Balance Increase 506 Erford Road Single First Horizon Home Ln $225,000 Home $ $}g$;~g0 j Cam Hill, PA 17011 Famil Inte i Bank CL~SE' $15,000* S 4600 -4608 Linden Ave 4-Unit National City Mortgage $300,000 $2830 ~v $}3$~~gg~ q - Mechanicsbur , PA 17055 Res.A tmt Irate i Bank C~~~#"' ~ $70,000# 277# 576-580 W. Louther Street 4-Unit National City Mortgage $250,000 $2995 $1716 $•i-1~4;990~ 8' g Carlisle, PA 17013 Res.A tmt Commerce Bank LOC $200 $30,000 120 N. Second Street 2-Unit Chase Home Finance $125,000 $1455 $9~i9~37 $66; }$g~(x~~ 4+F6..,1~ Enoia, PA 17025 Res.A tmt Wilmer & Patricia Harris $290 $17,000+/- 224-226 Lincoln Street 2-Unit First Horizon Home Lon $130,000 $1525 $955K~~• X9655, ~ Ma sville, PA 17053 Res.A tmt Inte i Bank CL1* $10,000* 493 State Street 2-Unit Chase Home Finance $125,000 $1575 $63-~kgg- Enoia, PA 17025 Res.A tmt ~ 411 Water Street 2-Unit America's Servicing Co. $125,000 $1465 $9851~r/r $fr3;+466~ 3~8$ New Cumbind, PA 17070 Res.A tmt Inte Bank LOC $100 $24,000 306 Third Street Single First Horizon Home $120,000 $950 $~6 3fi5,~Q' 2 3 Enoia, PA 17025 Famil Loan $i3 L•_i,~ 439 N. Second Street Single Chase Home Finance $135,000 $1025 $$q$ $G/ $~o ~38q. Enoia, PA 17425 Famil Inte ri Bank CL2# $25,000# 1417 Walnut Street Single Chase Home Finance $120,000 $920 $-'i<63.77~ '$59;3f39 AFB, ~ 3~}- 3 $ Lemo ne, PA 17043 Famil Inte i Bank CL2# $25,000# 404 State Street Single Chase Home Finance $80,000 $775 $602 $9q;gg(}3y~~ 3 Enoia, PA 17025 FamiI Inte i Bank CL1 * $10,000* 198 Creekside Dr Single Integrity Bank $150,000 $1000 CL1* $110,000* 535* Enoia, PA 17025 Family 36 Creekside Dr Single America's Servicing Co. $140,000 $1000 $896- j3$ -A,6q~,3gg•~'~~ Enoia, PA 17025 Famil Inte i Bank CL I * $15,000* 406 Fairview Avenue Single Bank Of America LOC $90,000 $795 $273 $74,000 0 Envla, PA 17025 Fami[ 502 State Street Single Integrity Bank $75,000 $795 CL1 * $55,000* Enoia, PA 17025 Famil 3 Cassatt Street 3Unit twn Commerce Bank, Hbg $250,000** $2700 $1953 $•3~43.9A9•- ~96fr Enoia, PA 17025 HouselA 1=B~ So© 100-102 Wyncote Ct. 2 Unit Wilmer & Patricia Harris $132,000 $1390 $843 $~F-89i}- 350 Mechanicsburg PA 1 055 Resid.A t Boilin S rin ,PA17007 430 N. Be eet Vacan T' C~,tt e $30,Qp8-~' $20~ $50 tax' 0 `7~ C e, PA 17013 to / muna ~ Total = 18 Pro erties 29 units $2,b00,000 $20,695 $19,037 $1,365,450 ~4' ~ Credit•Card Obligations totals $25,000. Personal assets including Bank Deposits & paid off Autos (2) totals $25,000. Auto loan $29,000. Therefore, Net Worth = $2,600,000+$25,000 - $1,365,450 -$221,000-$115,000- $54,000 = $868,000. CLl" and CL2# are Commercial Loans with Integrity Bank in the amounts of $240,000 and $125,000 on a 20 year amtzn and the monthly mortgage payments are $1804 and $939, respectively. Current Balances are $~9A~ $5;990 respectively. Loan balances are assigned to the collateral properties to reflect the total approx ma ~>'y t l Please note that most first mortgages are IS year fixed, and payments include taxes and insurance except as noted below: Total taxes and insurance for 406 Fairview Ave should be approximately $1380/year and the same for 502 State Street should be approximately $1350/year. Taxes and Insurance for 198 Creekside Dr. should be approximately $2100/year. 3 Cassatt St, Enoia property is under construction (80% complete) -Expected to be fully rented by end of 2011. Townhouse has SBR, 3.SBA, each apartments has 3 BR, 2.SBA, and an additional lot for one more townhouse at a later date. Property has total 10 off street parking. Each unit has central air and all new appliances. Taxes & Insurance total $3000/year. r a~~ F . , f EUE#211t C RENT LIN#ON TO PROCESS THIS APPLICATION, ALL REQUESTED INFORMATION MUST BE PROVIDED x New Re nest Renewal Modification MEMBER BUSINESS CREDIT APPLICATION Com Le Name: Gnana Chinniah Tel hone Number: 7177326273 Com an Address: 506 Erford Road Ci :Cam Hill State:PA Zi :17011 Com an Mailin Address: Ci State: Zi Are Facilities Owned or Leased: Monthl Pa ment: $ Years in Business: Tax ID Number: T of Business (NAILS): ~ Gross Annual Sales: $240,000 Business X Proprietor Partnership S- C-Corporation Limited Liability Corp/Comp. G 'on How much would ou like to borrow and what are the nested re ent terms7:~400,000 erm: 20 Yrs How are ou usin these funds?:Credit Consolidation ' c value?: 3 Sound Inv 'es w, over $ . Name Title Breen a of Ownersh' Gnana Chinniah and Su thini Chinniah Owners 100% Lender Type of Loan Current Balance Monthly Payment Secured by Please see attached schedule of Real $ $ Estate owned b the Chinniahs $ $ $ $ $ $ $ $ Totals: Any unsettled lawsuits, judgments or disputes?: X Yes No If yes, what and why: Plaintiffs in a Civil Rights lawsuit that is very likely to settle or get a jury verdict favorably to the borrowers Bankruptcy ever filed by business?: Yes X No If yes, when?: An outstand' tax osbli ' ;ns?: Yes X No If yes, why?: Service Yes No If es, Name of Provider: Checking Account X Balance: $10,000 Savings Account Balance: $ Cash Management Other This Credit Union may check credit and trade references in reviewing this application, and disclose information about its credit experience with applicant, as authorized by law. This Credit Union may also check the personal credit history of the principal owner(s) and/or key individual(s). In addition to the information requested on this application, this Credit Union may subsequently request additional information from the applicant. Applicant authorizes the Credit Union to disclose this informatioo contained in this application, any credit report and personal 8naecial ioforasation with the Credit lJnion's Servicer so1Ny for the purposes of underwriting this loan. a C t As an authorized agent of the applicant company, I have stated that everything in the application and information submitted along with the application is true. I (we) that this Credit Union may provide information about me (us) or m (our account to others. ~ ' ~ Gnana Chinniah D/.~~- ab~f ~ ~2n t Z.. Authorized St ature (Must be an Officer of Company) Printed Name Title Date 11 ( ~ ~-L-~ Suganthini Chinniah ~ ~ 1 9 1 1,2 Authonzed Signature (Must be an Officer of Company) Printed Name Title Date Proposed Debt Monthly Annual Total Private Loan (Hams) - Wyncote $ 843.00 $ 10,116.00 $ 99,500.00 Metro (Commerce) - Cassatt $ 1,953.00 $ 23,436.00 $ 128,800.00 Honda Auto $ 535.00 $ 6,420.00 $ 24,700.00 Consolidation Loan ; 9,446.00 ;113,352.1,0 ; 1,392,919.00 Total $ 12,777.00 $153,324.00 $ 1,64 ,919.00 GonaoGdation Loan Estimated MV $ 2,190,000.00 AmeriChoice would require a first Estimated Loan Amount $ 1,392,919.00 lien mortgage security interest in all Amortization 240 properties except for Wyncote and Interest Rate 5 25% Cassett. The auto loan was Left out; Estimated Payment $ 9,446.00 however, if you want to include that payoff you should have enough equity in the real estate. `M9 C. The estimated closing costs do Loan Origination $ 7,000.00 not include any prepayment Recording Costs $ 500.00 penalties. I do not know if any of Flood Certifications $ 375.00 the loans to be paid off have such Tax Monitoring Costs $ 1,425.00 penalties. I imagine the Appraisals $ 6,525.00 commercial loans might have Title Insurance $ 5,790.fl0 penalties, but could have run their Loan Documents $ 500.00 course depending on how long Misc. Fees $ 250.00 ago they were taken out. Total $ 22,365.00 Difference in Monthly Cash Flow $ 8,381.00 -p Debt Mc~nthlY AttnuaF 7o~al Est. Value ASC - 411 Water $ 891.00 $ 10,692.00 $ 58,500.00 $ 125,000.00 ASC - 36 Creekside $ 938.00 $ 11,256.00 $ 59,300.00 $ 140,000.00 Metlife (1st Horizon) - 306 3rd $ 813.00 $ 9,756.00 $ 63,000.00 $ 120,000.00 BOA - 406 Fairview Ave $ 236.00 $ 2,832.00 $ 75,000.00 $ 90,000.00 Nation (1st Horizon) -Primary $ 1,356.00 $ 16,272.00 $ 121,000.00 $ 225,000.00 Nation (1st Horizon) -Lincoln $ 1,063.00 $ 12,756,00 $ 55,800.00 $ 130,000.00 PNC (Nat'l City) - 1st on Louther $ 1,838.00 $ 22,056.00 $ 105,000.00 $ 250,000.00 Chase - 493 State $ 960.00 $ 11,520.00 $ 58,500.00 $ 125,000.00 Chase - 120 N. 2nd $ 937.00 $ 11,244.00 $ 60,700.00 $ 125,000.00 Chase - 404 State $ 586.00 $ 7,032.00 $ 34,500.00 $ 80,000.00 Integrity - 502 State 8 198 Creek $ 1,804.00 $ 21,648.00 $ 213,700.00 $ 225,000.00 Private Loan (Harris) - Wyncote $ 843.00 $ 10,116.00 $ 99,500.00 $ 132,000.00 Metro (Commerce) - Cassatt $ 1,953.00 $ 23,436.00 $ 128,800.00 $ 250,000.00 PNC Bank -Linden $ 1,982.00 $ 23,784.00 $ 127,255.00 $ 300,000.00 Chase Bank - 1017 Walnut $ 774.00 $ 9,288.00 $ 48,889.00 $ 120,000.00 Chase Bank - 493 State $ 861.00 $ 10,332.00 $ 50,243.00 $ 135,000.00 Integrity LOC - 411 Water 2nd $ 100.00 $ 1,200.00 $ 24,000.00 $ - Integrity Bank -Various in 2nd $ 939.00 $ 11,268.00 $ 111,539.00 $ - Metro LOC - 2nd on Louther $ 276.00 $ 3,312.00 $ 31,100.00 $ - Private Loan (Harris) - 120 N. 2nd $ 290.00 $ 3,480.00 $ 17,000.00 $ - Honda Auto $ 535.00 $ 6,420.00 $ 24,700.00 BOA Credit Card $ 18.00 $ 216.00 $ 1,833.00 Lowes Credit Card $ 52.00 $ 624.00 $ 1,768.00 BOA Credit Card $ 169.00 $ 2,028.00 $ 7,950.00 BOA Credit Card $ 444.00 $ 5,328.00 $ 18,200.00 Sears Credit Card $ 135.00 $ 1,620.00 $ 4,266.00 M1st FCU Credit Card $ 90.00 $ 1,080.00 $ 4,511.00 Home Depot Credit Card $ 142.00 $ 1,704.00 $ 12,000.00 Metro Credit Card $ 133.00 $ 1,596.00 $ 5,000.00 Total $21,158.00 $253,896.00 $ 1,623,5 4.00 $ 2,572,000.00 ' ~~.,.~~~a~, ~ iviw~ag~ Yage 1 of 5 RE: Update Dallas Zulli (dzulli@americhoice.org) Mon 6/25/12 3:04 PM Gnana Chinniah (chinniahg@hotmail.com) 1 attachment Gnana, I've attached a spreadsheet outlining the debt consolidation loan we discussed. Once you've had a chance to review it please give me a call with any questions. Thanks, Dallas J. Zulli VP Business Lending AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone (717) 591-1266 Fax (717) 697-3713 Email dzulli a.americhoice.oi-g AmeriChoice Federal Credit Union and all its mortgage loan originators are registered with the Nationwide Mortgage Licensing System, a free service for consumers to confirm that the mortgage company or mortgage professional with whom they wish to conduct business is licensed. Licensing information can be obtained at w~a~w.nmisconsumeraccess.org. My license number is: 54384$ http://sn 122w. snt 122.mail.live.com/mail/PrintMessages.aspx?cpids=83ecba89-bef8-11 e 1-... 6/25/2012 n~tuiati runt tvtessage Page 2 of 5 NOt1CB' The information contained in this message may be privila~ged, conf;dcntial, and Protected from disclosure. if the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error. please notify us immediately by replying to this message, and then delete it from your computer. All e-mail sent to this address will be received by AmeriChoice's corporate e-mail system and is subject to archiving and review by someone other than the recipient. From: Gnana Chinniah [mailto:chinniahg@hotmail.com] Sent: Friday, June 22, 2012 5:16 PM To: Dallas Zulli Subject: RE: Update Dear Dallas, Sorry I did not have a chance to read your email until I came home at 5:05 pm. I am open for further consolidation if you want to suggest a group of properties/loans so we can discuss. I am open to consolidate 306 Third Street together with the 3 properties that I have provided. I will come up with some more alternatives so we can try to meet your numbers/ratios as you are a very smart banker and helpful. You can call me at my office phone number on Monday or I will stop by noon after speaking to you in the morning. I have a surgery scheduled on July 11th which will likely require 2 or 3 weeks of recovery time. So please help me close this before 10th, if possible. Have a Good Weekend. Regards, Gnana Subject: RE: Update Date; Fri, 22 Jun 2012 13:33:40 -0400 From: dzulli@americhoice.org To: chinniahg@hotmail.com Gnana, We pulled credit {which was fine) and reviewed the entire financial package this morning. As stated before, the proposed loan and respective property numbers look good; however, the overall debt requirements may be prohibitive and require further consolidation. I'd like to discuss consolidating additional propertieslloans to improve the global debt coverage. As presented, the debt service coverage ratio is coming up short of our loan policy requirement. I think further consolidation may give you more flexibility, improve your cash flow each month and allow us to payoff your credit cards and http://sn 122w.snt 122.mail.live.com/mail/PrintMessages.aspx?cpids=83ecba89-bef8-11 e 1-... 6/25/2012 'o`maz' .,rn ~!essage ^age ; o~ 5 highe~ interest rate loans. Please let me know if you have time today or early next week to stop by and gc cv~r somE~ numbers/options. Thanks. Dallas J. Zulli VP Business Lendin, AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone (717) 591-1266 Fax (717) 697-3713 Email dzulli~aamerichoice.orQ AmeriChoice Federal Credit Union and all its mortgage loan originators are registered with the Nationwide Mortgage Licensing System, a free service for consumers to confirm that the mortgage company or mortgage professional with whom they wish to conduct business is licensed. Licensing information can be obtained at wtivw.mnlsconsumeraccess.ore. My license number is: 543848 Notice: The information contained in this message may be privileged, confidential, and protected from disclosure. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error. please notify us immediately by replying to this message, and then delete it from your computer. All e-mail sent to this address will be received by AmeriChoice's corporate e-mail system and is subject to archiving and review by someone other than the recipient. From: Gnana Chinniah [mailto:chinniahg@hotmail.com] Sent: Tuesday, June 19, ZO12 10:50 PM To: Dallas Zulli Subject: RE: Update http://sn 122w.snt 122.mail.live.com/mail/PrintMessages.aspx?cpids=83ecba89-bef8-11 e 1-... 6/25/2012 ~-o- rtltljC 4 Ul J Dear Dallas, Thank you very much for the update and your help. I will drop-off the completed application at your office tomorrow or fax it over. I look forward to establish along-lasting business relationship with Americhoice as my primary banking institution. Please let me know if you need any additional information or have questions. Regards, Gnana Chinniah Subject: RE: Update Date: Tue, 19 )un 2012 16:50:03 -0400 From: dzulli@americhoice.org To: chinniahg@hotmail.com Gnana, The numbers Took pretty good on the properties and the proposed consolidation. Can you please complete, sign and return the attached application and I'll get things moving forward with our underwriter. I'll also get estimates for appraisals in the interim. Thanks, Dallas J. Zulli VP Business Lending Americhoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone (717} 591-1266 Fax (717) 697-3713 Email dzulli(c~americhoice.org http://snl22w.snt122.mail.live.corn/maiUPrintMessages.aspx?cpids=83ecba89-bef8-11 e 1-... 6/25/2012 nuuiiau rni2~ iviessage Page 5 Of 5 AmeriChoice Federal Credit Union and all its mortgage loan originators are registered with the Nationwide Mortgage Licensing System, a free service for consumers to confirm that the mortgage company or mortgage professional with whom they wish to conduct business is licensed. Licensing information can be obtained at u«-t~.nmiscansumeraccess.orv. My license number is: 543848 Notice: The information contained in this message may be privileged, confidential, and protected from disclosure. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to this message, and then delete it from your computer. All e-mail sent to this address will be received by AmeriChoice's corporate e-mail system and is subject to archiving and review by someone other than the recipient. From: Gnana Chinniah [mailto:chinniahg@hotmail.com] Sent: Tuesday, June 19, 2012 1:36 PM To: Dallas Zulli Subject: Update sorry I mistyped your email address! From: chinniahg@hotmail.com To: ddzulti@americhoice.org Subject: Update Date: Tue, 19 )un 2012 12:28:34 -0400 Dear Dallas, Please provide some update as to the status or if you need any additional information. Thanks, Gnana Chinniah http://sn 122w. snt 122.mail.live.com/rnaillPrintMessages.aspx?cpids=83ecba89-bef8-11 a 1-... 6/25/2012 , T_=~,*~,a ' ~PsszQe "age ; of 2 R;f:o ~~a?~rrlrrlitment Letter and Appraisal/Title Work Dallas Zulli (dzulli@americhoice.org) Fri 7/46/12 4:15 PM Ghana Chinniah (chinniahg@hotmaiLcom) Ghana, should be able to deliver you a commitment on Monday. Can you please send me the updated application and personal statement as we discussed? Fax or a-mail is fine. Thanks, Dallas J. Zulli VP Business Lending AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone (717) 591-1266 Fax (717} 697-3713 Email dzulli,, ~americhoice.orQ ,..;'.g~ AmeriChoice Federal Credit Union and all its mortgage loan originators are registered with the Nationwide Mortgage Licensing System, a free service for consumers to confirm that the mortgage company or mortgage professional with whom they wish to conduct business is licensed. Licensing information can be obtained at www.nmisconsumeraccess or My license number is: 543848 Notice: The information contained in this message may be privileged, confidential, and protected from disclosure. if the reader of this message is not the intended recipient, you are hereby notified that any dissemination, http://sn 122w.snt 122.mail.live.com/mail/PrintMessages.aspx?cpids=52adeb96-c7a7-11 e 1-8... 7/8/2012 ' , , t ~?t '`?'essage gage 2 0 iis~ ~ bution, :>r co~~~ing of this communication is strictly prohibited. If you have received this communication in error, ~Ie~ES~ notit~ us immediately by replying to this message, and then delete it from your computer. All e-mail ,ent co this adcres~ i!I be received by AmeriChoice's corporate a-mail system and is subject to archiving and ~•wi,~ by someone other than the recipient. From: Gnan~ Chinniah [mailto:chinniahg@hotmail.com] Sent: Friday, July 06, 2012 3:56 PM To: Dallas Zulli Subject: Commitment Letter and Appraisal/Title Work Dear Dallas, I was hoping to get your commitment letter so I can bring the check after conferring with Atty. Greg Reed about the timeline etc. Please call or respond via email. Thanks, Gnana http://sn122w.snt122.mail.live.com/mail/PrintMessages.aspx?cpids=52adeb96-c7a7-11 e 1-8... 7/8/2012 A r FEDtRAtr CRiDIT YNtON TO PROCESS THIS APPLICATION, ALL REQUESTED INFORMATION MUST HE PROVIDED x New R nest Renewal Modification MEMBER BUSINESS CREDIT APPLICATION Com lr+lame: Ghana inniah Tel Number: 7177325273 Com an Address: 506 Erford Road Ci :Cam Hill State:PA Zi :17011 Co an Mailin Address: Ci State: Zi Are Facilities Owned or Leased: Montht Pa ent: $ Years in Business: Tax ID Number: T of Business AICS : Gross Annual Sales: $240,000 Business X Proprietor Partnership S- C-Corporation Limited Liability Corp/Comp. How much would ou tike to and what are the ted re ent terms?: 1,400,000 Tdrm: ~ Yrs How are ou us' these funds?:Credit Consolidation ' our. value?: 15 Inv ov # ' Name Title P' of Ownelshi Ghana Chinniah and Su i Chinniah Owners 100% Lender Type of Loan Current Balance Montlily Payment Secured by Please see attached schedule of Real $ $ Estate owned b the Chinniahs $ $ $ $ $ $ $ $ T S Any unsettled lawsuits, ~udgmeMs ot• disputes?: X Yes No [f yes, what and why: Plaintiffs in a Civil Rights lawsuit that is very likely to settle or get a jury verdict favorably to the borrowers Bankruptcy ever filed by business?: Yes X No If yes, when?: An tax _ Yes X No If es, why?: Serv[ce Yes No If Nsme of P'rovNler: Checking Account X Balance: $10,000 Savings Account Balance: $ Cash Management Other This Credit Union may check credit and trade references in reviewing this application, and disck?se information about its credit experience with appiicartt, as ~thorined by law. This Credit Union may also check the persona! credit history of the principal owner(s) and/or kry individual(s). In addition to the information requested on this appliption, this Credit Union may subsequently request additional information from the applic~t. Applka®t aathorbta the Crsdit Ueiior to dhxlae thb informatioe eorrbtiried b tiia appiieatler, arty credit report aad persoai 8raaaciai iraforaaHota wkh the Credit Uaioa'a Servicer eokly for the prrpoaca of saderwritiag this lose. As an authorized agent of the applicant company, I have stated that everything in the application and information submitted along with the appli is true. l; (w that this Credit Union may provide information about me (us) or my (our) account to others. Ghana Chinniah Q y ~p / Authorized Signature (Must be an Officer of Company) Printed Name Title ate c~ . DA _ ~ suganthini Chinniah o ~11 09 1 ~.o j Z Authorized Signature (Must be an Officer of Company) Printed Name Title Date PERSONAL FINANCIAL STATEMENT 1 C~N/~N ~ !~'t11/Nt 1 1 ~S /S 6 2 .N_ wl ron~ 2 2 Z j 1 ~p ~rs~D 1 eft tt- t 1 ~ 7 7 ~ ~ 2 2 2 1. Total Assets ould equal otai Liabilities + Net Worth Date Of 3 t: 2. 1' ' ' an " ' o .ai.,. Cash (Schedule I) cab Real Estate Mortgage(s) (Schedule Investments- $ Installment Loans (Schedule 7) $ Marketable Stocks 8c Bonds Schedule 2 Accounts & Notes Receivable $ Credit Cards $ Real Estate Owned (Schedule 3) Federal Income Tax $ Auto Year;/~ Make $ Other Liabilities $ Auto Y Make $ TotalI.iabilitiea S Cash Value Life Insurance CSVLI (Sch. 4) $ Net Worth S Retirement/Profit Sharing Accounts (Sch 5) $ (Total Assets Minus Total Liabilities) Business Ventures (Schedule 6) $ ,k~~,,~,1' 'c°-'~ Other Assets $ ~-ss~ Total Asr:eta $ T. + Nit Wo $ SALARY OCCUPATION OR TYPE BUSINESS 1 $ ~ acs 1 t err 2 $ 2 Bonuses &c Commissions $ Em to er How Lon Em to ~ Dividends & Interest $ 1 ~,l n I Rents & Royalties $ 2 2 Other (Itemize) $ Position Held Total Annual Income $ ~,2 1 ALIMONY-CHILD SUPPORT: Inclusion of alimony, separate 2 maintenance or child support as income is voluntary and need not be Number Of De ndents revealed if you. do not wish to have it considered. If you choose to include such payments, please describe if by the court and case number, the amount 1 and the name and address of the person obligated to pay that amount to 2 you. If you are responsible for paying alimony, separate maintenance or child support, please give particulars of the obligation along with your otluc Other Endorser or Co-maker on Notes? Brief Description: Information 1. Yes No 2. Yes No R k,,,4,~ ~ . Defendant In Any Legal Action? I . X' Yes No 2. Yes No ~ „ ` Bankruptcy Ever Filed? d-~.~a~4'.~ ' Div 1. Yes No 2. Yes No ~ ~4~-,SAS Schedule 1 Name of Financial Type of Owner JO If Pledged, To Whom? Balance Institution Account Cash, JV~G C-~,YN;~, )C. ~ Checking, Savings, CD's, MM'S Schedule 2 Description Registered in # of Share or Par Total Market Value Where Pledged? Name Of Investments- $ Stocks & $ Bonds $ 'i ~n - Schedule 3 Description and Titled To Market Value Mortgage Lender Balance Mo. Pymt Location Real $ Estate $ Owned $ Schedule 4 Name of Insurance Policy Beneficiary/Relationship Amount Loans CSVLI" Com an Owner Life Insurance Carried Schedule S % Vested Company Account Manner of Payout Distribution Date Amount Name # Vested interest in Retirement/ Profit Sharing Accts ~ is i a 'S: ~ '~+,f;,' at t3w,,, Schedule 6 Business Names in Position or Line of Years in l Current % of Business Present which you area Title Business Business Market Ownership Net Value rinci t or artner Value Worth Your Business Ventures Schedule 7 Lender JO Origination Balance Monthly Final Payment Collateral Date Pa ment Date Loans owed $ $ to CU's, $ $ Banks, and $ $ others $ $ I (we) confirm that this financial statement is given to you by me for the purpose of obtaining credit from time to time; that I have read the same and that it is true and complete. I agree that if, in your sole opinion, this financial statemenrt is found to be incon~ect any one or more or all of my obligations to you at your sole discretion may be. matured by you without demand upon formal notice to me. I (we) authorize this Credit Union t disclose the information contained in this application, any credit report and personal financial inior®ation with this Cred t Union's Servicer, solely for the purposes of underwriting and servicing this loan. Applicant authorizes the Credit Union t obtain a Personal aad/or Business Credit Report through its Servicer. Signature Date ° ~ ~1 Signature S ~ Date O p~~/ ~ ~o?Z P NAL I+IN A l (s/V/~-N l~ NNL 1 i ~S /S t? 2 N w nr 2 2 i 1 I ~ ~FO'~D P t..t- f I ~ 7 7.3~ 2 2 2 l . T egt>al alai Liabilities + Net Worth Dae of t: ' "x" ' p. Cash (Sd>0dnle 1) $ j heal Mortgage(s) ( k Investments- $ Installment Loans (Schedule 7) $ Marketable Stocks & Bonds Schedule 2 Accounts 8c Notes Receivable $ Credit Cards $ Real estate Owned (Schedule 3) Federal Income Tax $ Auto Year Make $ Other Liabilities $ Auto Y Make $ Total Liabilitlea S Cash Value Life Insurance CSVLI (Sch. 4) $ Net Worth S Retirement/Profit Sharing Accounts (Sch 5) $ (Total Assets Minus Total Liabilities) Business Ventures (Schedule 6) $ ~ ,E,r a~c..°-~ Other Assets $ T S _ T + Neat: Word S SALARY OC A'Y`ION OR ~ SS t $ $ carte 1 ,S~ s, t- 2 $ 2 Bonuses tit Commissions $ Em to r How Lon Em to ed Dividends tit Interest $ 1 n 1 Rents 8t Royalties $ 2 2 Other (Itemize) $ Position Held Total Aaa~a~l Income $ 32 c~v l ALIMONY-CHILD SUPPORT: Inclusion of alimony, separate 2 maintenance or child ~pport as income is voluntary and need not be Number Of dents revealed if you do not wish to have it considered. if you choose to include such payments, please describe if by the court and case number, the amount l and the name and address of the person obligated to pay that amount to 2 you. If you are responsible for paying alimony, sepetate maintenance or child support, please give particulars of the obligation siong with your Other Endorser ar Co-maker on Notes? B ` Information 1. Yes No Z. Yes No ~ Defendant In Any Legal Action? 1. ~ Yes No 2. Yes No ~ Bankruptcy Ever Fiied? e'~'"`~'' ' ~ 1. Yes No 2. Yes No ~ ~~S sy..~g ~ .Sa•.,c #~cE" . Schedele 1 Name of Financial Type of Owner JO If Pledged, To Whom? Balance Instituti Account Cash, M G C.i}INN/hy~ ~c*ad Checking, Savings, CD's, MM's ti-, Schedule 2 Description Registered in # of Share or Par Total Market Value Where Pledged? Name Of Investments- $ StOCkS ~L $ Bonds Schedule 3 Description and Titled To Market Value Mortgage Lender Balance Mo. Pymt Location Real $ Estate $ Owned $ Sehedale 4 Name of Insurance Policy Beneficiary/Relationship Amount Loans CSVLI Com Owner Life Insurance Carried Schedule S % Vested Company Account Manner of Payout Distribution Date Amount Name # Vested interest in Retirement/ Profit Sharing Accts Schedule 6 Business Names in Position or Line of Years in Current % of Business Present which you area Title Business Business Market Ownership Net Value rind or artner Value Worth Your Business Ventures Schedale 7 Lender JO Origination Balance Monthly Final Payment Collateral Date Pa ent Date Loans owed $ $ to CU's, $ $ Banks, and $ $ others $ $ I (we) confirm that this financial statement is given to you by me for the purpose of obtaining credit from time to time; that I have read the same and that it is true and complete. I agree that if, in your sole opinion, this financial statement is found to be incorrect any one or more or all of my obligations to you at your sole discretion may be matured by you without demand upon formal notice to me. I (we) aethorize this Credit Union to dbcbse the information contained in this application, any credit report aed personal financial ieformatbn with the Credit Union's Servioer, solely for the purposes of underwriting and servicing this loan. Applicant aathorius the Credit Union to obtain a Personal and/or Basieess Credit Report through ib Servicer. Signature ~ ' Date d 9 ~ anl.~. Signature ~ • _ ,2` Date O `f :tolZ _ _ _ • '--'e'~•^~~' "V`essage Page 1 of 7 R,~: EJpdat~ Gnana Chinniah (chinniahg@hotmaiLcom) Thu 6/~ 8/12 10:51 PM dzulli~a americhoice.org Dear Dalls, I apologize for the delay in my response as I was extremely busy with my work at Gannett during the day, acid at properties this evening. Anyway, I will try to get the updated information tomorrow. I strongly believe that your underwriters would have already given you their blessings and you will get the same ~`rom the loan committee as well. Please keep me posted as soon as you get the good word so I can enjoy this weekend. Thanks for all your help. Regards, Gnana Subject: RE: Update Date: Thu, 28 Jun 2012 08:45:54 -0400 From: dzulli@americhoice.org To: chinniahg@hotmaiLcom Gnana, The persona! financial statement on Metro Bank's form is dated 6/9/2011. I hadn't noticed the "2D11" part. Can you please update the statement using our form (attached)? Also, I've attached a new application since the loan amount has increased substantially. Thanks, Dallas J. Zulli VP Business Lending AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone (717) 591-1266 Fax (717) 697-3713 http://sn 122w. snt 122.mail.live.com/mail/PrintMessages.aspx?cpids=a9fc3 969-66da-4eb8-b... 7/8/2012 p'' riChoice FEDERAL CREpIT UNION 8uiiding Relationships For Life July 10, 2012 Gnanachandra M. and Suganthini Chinniah 506 Erford Road Camp Hill, Pa. 17011 Dear Gnana and Suganthini: AmeriChoice Federal Credit Union (the "Gender") is pleased to advise you that, subject to the terms and conditions hereinafter set forth; it hereby approves your request far the proposed loan described below. The loan is subject to (1) Acceptance of this proposal; (2) Compliance with all the provisions hereof; (3) The stahztory and other requirements by which AmeriChoice Federal Credit Union is governed; and, (4} Borrower(s)'s compliance with all the terms and conditions stated in this letter: 1. Borrowers} Gnanachandra M. and Suganthini Chinniah 2. Amount of Loan $1,400,000.00 3. Purpose of Loan :Refinance existing debt 4. Term :120 month term loan with balloon; Payments to be amortized over 240 months 5. Monthly Payment :The monthly payment will be approximately $9,494.23; Payments include principal and interest due and payable commencing one month after date of settlement, unless otherwise stated in the Loan Documents 6. Late Payment Fee : 5% of total payment after 15 days past due, minimum of $25.00 7. Interest Rate :The interest rate will be fixed at 5.25% for 60 months thereinafter converting to a variable interest rate; the variable interest rate will adjust monthly to changes in the Wall Street Journal Prime Rate; The variable rate will be set equal to the highest base rate plus 1% on corporate loans pasted by at least 75% of the nation's thirty largest banks that The Wall Street Journal publishes as the Prime Rate with an interest rate floor of 4.50% Main Office: 2175 Bumble Bee Hollow Road • Mechanicsburg, PA 17055 • Phone: (717) 697-3474 • Fax: (717) 697-3713 i Websitec www.americhoice.orR LEND R s l.1lN ER CREDCL UNIONS" 8. Collateral :Lender will hold a first lien security interest in the land, buildings, and fixtures located at: 506 Erford Road, Camp Hili, PA 4600-4608 Linden Avenue, Mechanicsburg, PA 576-580 W. Lowther Street, Carlisle, PA 411 Water Street, New Cumberland, PA 1017 Walnut Street, Lemoyne, PA 120 N. Second Street, Enola, PA 493 State Street, Enola, PA 306 Third Street, Enola, PA 439 (1439) N. Second Street, Enola, PA 404 State Street, Enola, PA 198 Creekside Drive, Enola, PA 36 Creekside Drive, Enola, PA 40b Fairview Avenue, Enola, PA 502 State Street, Enola, PA 224-226 Lincoln. Street, Marysville, PA (collectively, the "Property") including future improvements erected thereon and placed therein as collateral for this Loan; An assignment of rents and leases will be recorded for the Property 9. Appraisal :Complete appraisals of the Property, performed by a certified appraiser approved by Lender, will be required for this Loan; The appraised value must equal or exceed $1,750,000,. otherwise this Commitment may become null and void at the Lender's sole discretion; If the appraised value of the Property is lower than $1,750,000 then Lender may lower the loan amount to equal 80% of the appraised value at its sole discretion; The loan amount will not exceed 80% of the appraised value of the Property; The appraisals must be satisfactory to Lender and Property must in a condition acceptable to Lender; If reappraisal of the Property should be required by Lender in the future Borrower agrees to pay for the appraisal; Borrower is responsible for the cost of the appraisals, $6,300; Borrower may pay the appraisal cost to Lender in installments of $2,100; The first installment must be paid to. Lender at acceptance of this Commitment; The second installment must be paid to Lender when the appraiser's physical inspection of the Property is complete; The final installment must be paid to Lender at settlement or delivery of appraisals to Borrower(s) 10. Prepayment :The Loan may be prepaid in any amount at any time without penalty on the loan Chinniah -July 2012 Z 11. Loan Documents :All documents pertaining to the closing of the loan including, but not limited to, the Promissory Nate, Mortgages}, Business Loan Agreement, Assignment of Rents & Leases and all other contractsldocurnents for closing must be prepared and executed satisfactorily to the Lender and their legal counsel's standards; All obligations shall be secured by cross default provisions and personal guarantees; Borrower(s) agrees to sign an Assignment of Rents and Leases Agreement for the Property 12. Ownership Change : In the event the Borrower(s) shall by sale or by operation of law, cause or allow the title or ownership of the Property herein required to be pledged as collateral for the loan become vested in any other entity or persons other than Borrower(s), including but not limited to, by means of sale, trade, acquisition or merger; the entire balance due hereunder shall, without demand, at the option of the Lender becomes due and payable 13. Financial Information :Borrower(s) shall furnish annually to Lender within 90 days of the applicable filing date personal tax returns; Borrower(s) shall furnish a personal financial statement and rent/roll forms to Lender annually upon presentation of the tax returns; At the request of the Lender, the Borrower(s) agree to supply the Lender with any additional personal or collateral information (i.e. copies of leases, etc.) 14. Adverse Change :The Borrower(s) will provide the Lender with immediate notice of any adverse change in Bonower(s)'s financial condition and the Lender shall have the option, in its sole discretion, to cancel its commitment because of such adverse change 1 S. Warranties :The Borrower(s) warrants in Borrower(s)'s acceptance of this commitment that all financial information that Borrowers} have submitted to the Lender is true and accurate at its time of submission and that there has been no material change; If any agreement, warranty, or representation is not true at the time it was made or at any time funding of the loan, the Lender may in its sole discretion cancel this Commitment Letter, either in whole or as to the remaining undisbursed funds 16. Flood Insurance :Prior to closing, the Lender will obtain a flood certification for the Property; Any fee incurred will be charged to the Borrower(s); if the Property is determined to be in a flood zone the Borrower(s) agree to purchase flood insurance to cover the Property and collateral secured by the Loan Cliinniah -July 2a 12 3 tiles; Loan settlement must occur within 60 days of the date herein otherwise this Commitment becomes null and void The terms and conditions of this Letter of Commitment shall survive the settlement of the loan until paid in full and shall be a part of the Promissory hole and Business Loan Agreement executed in conjunction herewith as though set forth in detail therein. Any modifications of this commitment shalt be in ~i•riting and agreed to by ali parties. Any default in the terms and conditions of this Commitment Letter shall be as bet~~~een the parties hereto eansidered a default in the terms of the Promissory Note. "ro the knowledge of the Borrower(s), no action, suit, or proceeding is pending or threatened wherein an unfavorable disposition could materially adversei}~ affect the Lender or the Property, assets, operations, or financial condition of the I3orro~icr(s). `Vi`e at AmeriChoice Federal Credit Union are pleased to extend this commitment to Gnanachandra M, and Suganthini Chinniah. ~~%e look forward to working with yuu in the future. Sincerer-. i - .i Dallas J. Iulli VP Business Lending ACCEPTANCE OF CO'1dMIT_NIENT The undersigned hereby acknowledges receipt of the foregoing Commitment this day of _ ! •r~.-~ , 2012, and does hereby accept all of the terms, conditions and time limitations set I'd -th in the Commitment by the execution of same. The proceeds of the loan(s). if any, made under this letter ~~ill be used exclusively for business purposes. Borro~~~er(s): _ Bv: Gnanachandra M. Chinniah, Individually B y ~ ~ =-=--L-~- Sugarithiri Chinniah. Individually _ _ ®7oiattia~Yr.,ene~xcama.~y ~.e~agzi~2s~ ~,.aviva~r~w..~om°-._ GNANA CHINNIAH 60-184/313 6 2 9 8 506 ERFORD RD. 717-732-6273 CAMP HILL, PA 17011 T ~ 1 r ~ - - - - ' ; A i~ ...f METRO BANK ' ~ ' - V•ti ~:03L30L846~: SL 3L4024 411' 6298 t7VLLlla11 t"Illll 1V1CSSd~C Page 1 of 3 RE: Appraisals 8[ Title work for Ghinniah's loan Gnana Chinniah {chinniahg@hotmail.com) Wed 8/08/12 12:22 PM dzulli@americhoice.org (dzulli@americhoice.org); lawoffice@reedpalaw.com (lawoffice@ reedpalaw.com) Dear Dallas, Thank you for your response and settlement time frame. Based on my understanding of the availability of Atty. Reed, I would prefer August 27th or 28th as I have a pretty tight schedule that week. Per request from Atty. Reed, I am making copies of all the mortgage bills, credit card statements, and loan balances to Mr. Harris etc so I can help both of you in getting the pay-off quotes in a timely fashion. If you need my authorization in writing to get these, please let me know. I truly appreciate your understanding of my personal situation, and strongly believe that I will get the auto loan paid off as well as a line of credit to maintain the collaterals of AmeriChoice. My wife will drop off the check for $2100 at one of your branch offices most likely today. Please let me know if you need any additional information. Regards, Gnana Subject: RE: Appraisals & Title work for Chinniah's loan Date: Wed, 8 Aug 2012 11:53:22 -0400 From: dzulli@americhoice.org To: chinniahg@hotmail.com Gnana, She can either mail it or drop it off at any one of our branches (addressed to my attention}. Let's see what the numbers are on the appraisals and we can go from there regarding a line of credit to improvement and the auto loan. We are likely looking at settlement the week of August 27th. Is there a day of the week or time of day that works best for you? Please let me know. Thanks, Dallas J. Zulli VP Business Lendine AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road http://sn 122w. snt 122.mail.live.com/mail/PrintMessages.aspx?cpids=4a3007a0-e 175-11 e 1-a... 8/8/2012 " i ivuiiau 1 1ll1L 1V1GJJ0.~G Yage 1 of"l RE: Appraisals Sc Title work for Chinniah's loan Atty Gregory Reed (lawoffice@reedpalaw.com} Tue 8/07/12 2:40 PM 'Gnana Chinniah' (chinniahg@hotmaiLcom} Goad afternoon, have received almost half of the title searches. The others will be completed soon. I will need your he{p obtaining the numerous pay-off statements for the mortgages. f'll be out of the office until Monday, August 20tH. € am available any day starting August 27, 2412 with the exception of the morning of September 6tH the 13tH, and the morning of the 19tH From: Gnana Chinniah fmaiito:chinniahgCa~hotmai! cowl Sent: Tuesday, August 07, 2012 11:58 AM To: dzulliCc~americhoice.org; lawofficeCa~reedpalaw.com Subject: Appraisals & Title work for Chinniah's loan Gentlemen: Thank you very much for keeping me informed about the progress of the title work and appraisal/final underwriting. Dallas, please let me know if you prefer my wife to hand deliver the $2100 check towards the appraisal cost or it is okay to mail it to you. I am very confident that the appraisal would easily meet your target value of $1.8M so that the original loan amount of $1.4M can be finalized. I would tike to have some liquidity in the form of Line of Credit so I can use some of this money to do required timely maintenance such as roof replacement of 2 or 3 properties which the appraisers may have already annotated. Say, if the aggregate total of the appraised value of all 15 properties is $2.OM as opposed to my estimate of $2.2M, the excess equity up to 80°!o Loan to Value can be as much as $200K. I would like to also pay off my Auto loan to improve my cash flow by as much as another $535/month. Please keep me posted as to what information you need from me so we can close this loan in a timely fashion. As I have a very eventful weeks ahead at my regular work place (Gannet Fleming) and my rental property related matters, I would like to know a settlement time so I can plan my calendar. Therefore, please pick a mutually agreeable time and place for settlement and let me know so I can let you know if I have any conflicts. Thanks, http://sn 122w.snt122.mail.live.com/mail/PrintMessages.aspx?cpids=5afdb5b 1-e0bf-11 a 1-a9... 8/7/2012 ' nu~cuau rent iviessage Page 1 of 6 RE: Appraisals SC Tttle work for ~hinniah's loan - : Gnana Chinniah (chinniahg@hotmail.com) : Wed 8/15/12 9:25 PM dzulli@americhoice.org (dzulli@americhoice.org); lawoffice@reedpalaw.com (lawoffice@ reedpalaw.com) Dallas, I have already requested for all of the pay-off statements for the mortgages and credit lines/cards involved in this loan. They would be mailed out to my home address. I wilt make copies of the same and forward them to you and Atty. Reed's office so that we can start putting the final numbers together for the settlement on or before 31 August 2012 as the pay-off numbers are good till the end of the month. Based on your representation, and Atty. Reed's estimate of time frame provided at the beginning of the loan initiation and our engagement, I still believe that we should be able to close this loan before the end of August.. Therefore, please follow up with the appraisers and request them to expedite the completion of those reports with the goal of settling this loan on or before August 30 as I don't want to wait till the last day of the month. I strongly believe Atty. Reed will do everything in his control to complete the title work as soon as he returned back to his office on Monday, August 20, 2012. Please keep me posted as to the developments to make sure that everyone involved is doing their role to close this loan in a timely fashion. Thanks, Gnana Subject: RE: Appraisals & Title work for Chinniah's loan Date: Wed, 15 Aug 2012 16:18:53 -0400 From: dzulli@americhoice.org To: chinniahg@hotmail.com Gnana, We have not received the appraisals yet, but when we do I'll let you know. I did speak with Attorney Reed's office and they are not prepared to set a settlement date as they do not have the title work completed. I asked them to contact me once they were able to set a date. Thanks, Dallas J. Zulli VP Business Lending http://sn 122w.snt 122.mail.live.com/maiUPrintMessages.aspx?cpids=4109b332-e741-11 a 1-... 8/15/2012 DETHLEFS-PYKOSH LAW GROUP, LLC Darrell C. Dethlefs* Of Counsel Michael J. Pykosh* 2132 Market Street John R Logan** Bryan W. Shook Camp Hill, PA 17011 Paul D. Daggs Melanie L. Erb Phone: (717) 975-9446 al Staff Heather N. Orisko Toll Free: (800) 287- 1202 Sherry L. Declcman* Charles J. Hartwell Fax: (717) 975-2309 Crystal L. Mahoney Richard D. Hollingworth, Jr. E-mail: ddethlefs@aol.com Susan E. Disbrow www.dplglaw.com Christopher J. Damone 'Licensed PA Title Agents •'Admitted to the NJ Bar August 30, 2012 Gregory R. Reed, Esquire Law Offices of Gregory R. Reed 3120 Parkview Lane Harrisburg, PA 17111 RE: Your Client: Gnanachandra and Suganthini Chinniah My Client: Amerithoice Federal Credit Union Matter: Business Loan Application Dear Attorney Reed: This letter is a follow up to our telephone conversation of August 28, 2012. Earlier this summer, your clients sought a business loan for the purpose of refinancing existing business debt. In connection with that business loan request, your client provided my client with information regarding property values. A copy of the document that your client provided my client is attached hereto as Exhibit "A" to this letter. On July 10, 2012, my client issued a conditional commitment letter to your client. That letter stated, "The loan is subject to (1) acceptance of this proposal; (2) compliance with all provisions hereof; (3) the statutory and other requirements by which AmeriChoice Federal Credit Union is governed; and, (4) the borrowers compliance with all the terms and conditions stated in this letter." Paragraph 9 of the conditional commitment letter states that a condition of the loan was, "Complete appraisals of the Property, performed by a certified appraiser approved by Lender, will be required for this Loan; The appraised value must equal or exceed $1,750,000, otherwise this Commitment may become null and void at the Lender's sole discretion; If the appraised value of the Property is lower than $1,750,000 then Lender may lower the loan amount to equal 80% of the appraised value at its sole discretion; The loan amount will not exceed 80% of the appraised valued of the Property; The appraisals White Rose Business Center - 100 Lincoln Way East, Ste. C 1 E. Market Street, Ste. 201 A Debt Relief Agency Chambersburg, PA l 7201 York, PA 17401 The Dethlefs-Pykosh Law Group, LLC - "Your Full Service Law Firm " must be satisfactory to Lender and Property must in a condition acceptable to lender:' (Emphasis Added.) It is clear that the loan was conditioned upon the appraisals that must be satisfactory to the lender and that the properties must be in a condition acceptable to the Lender. I am including herewith copies of the first ten (10) appraisals. To begin with, none of these properties appraised at values equal to the values stated by your client when making application for this business loan. In fact, a spreadsheet comparing the borrower's opinion of value with the appraised value on the first ten (10) properties demonstrates that there is a substantial difference of $233,000.00 in values. Many of these properties appraised at values significantly less than the borrower indicated when he made application for this business loan. But more importantly and the key to the Credit Union's decision to not lend your client money is that the appraisals reflect substantial problems with the conditions of the properties. This letter will highlight some of these condition deficiencies. On the property located at 406 Fairview Avenue, the appraiser noted "evidence of deferred maintenance and obsolescence". (Emphasis Added.) On the property located at 493 State Street, the appraiser stated, "The subject property is considered. to be in average to fair condition........Unit 2 is considered to be in fair condition; the bathroom flooring and interior paint show extensive deferred maintenance. Water stains are present on the ceiling the (See subject photo's). Unit #1's tenant indicated that the unit has roaches. Visible evidence was present." (Emphasis Added.) On the property located at 1120 Second Street, the appraiser noted, "The subject property is considered to be in average-fair condition......Unit 2 is considered to be in fair condition; the half bathroom (no value given), flooring and interior paint show extensive deferred maintenance. See Photographic Addenda." (Emphasis Added.) On the property located at 1439 Second Street, the appraiser noted, "Evidence of deferred maintenance and obsolescence with age in that repairs are needed along with reflnishina......Bathrooms are considered to be in Fair to Average condition. See subject photos for deficiencies and areas in need of cleaning and repair." (Emphasis Added.) For the property located at 36 Creekside Drive, the appraiser noted, "The subject is considered to be in Fair Condition with many items needing refinishing or overhauling (flooring, cabinets, bathrooms and interior paint), deferred maintenance obvious shortening the life expectancy and increasing the effect- tive age also with a lack of exterior yard maintenance decreasing market appeal." (Emphasis Added.) It is clear from a review of these appraisals that the common theme running through all these appraisals is that these properties have significant condition deficiencies in the area of deferred maintenance. The appraisals are attached to this letter as Exhibit "B" far your reference. The AmeriChoice Federal Credit Union will be issuing a formal declination of credit to your client based on the expressed contingency in Paragraph 9 that the appraisals must be satisfactory to the Lender and the properties must be in condition acceptable to Lender. Your client has demanded a refund of the cost of the appraisals. Paragraph 20 of the conditional commitment letter states that the Borrower is responsible for the costs of the appraisal fees. And, finatly, your client has threatened my client with litigation and has sent me an email asking if I would accept service. There is no question that the conditional commitment that your client agreed to, provided that the properties must be in a condition acceptable to the Lender. There is also no question that the appraisals highlight significant deficiencies in the conditions of the properties. Should your client pursue litigation that is baseless and without any merit, then my client will certainly have a claim for the reimbursement of any attorney fees incurred in defending meritless claims. Your client's threat of a lawsuit in an attempt to force the Lender to accept deficient collateral is outrageous and will be vigorously defended. If you wish to discuss these issues in further detail, I can always be contacted on my cell phone at (717) 443-2447 or at my ofFice at (717) 975-9446. Very tru y rs, Darre ethlefs DCD:sId Enclosures cc: Dallas Zulli _ _ ~H~~i~ 9' 11 (E " ~ '~(tf (I ' TAX PAYE's CO='Y RiII No: 1116 ~I_"~ ' ~1~~~ ~~~1`I~l~~ 2012 S~I~ment of Real Estate Taxes I_Dat No~ X7/0002 0 1 2 PAYABLE a; f;e; a.=..~----------: 3.~~:. Improvement Mine_a1 I 4ota1 TO` ve7.u~a ),90~~ 67,800 0' f38_700 DEBBIE LUPOLD, TREASURER E,~S7 ~=MNS3C>R) Att°li'S.D. Discount t=ace Penal 98 S. ENOLA DRIVE, ROOM 101 ENOLA PA 17025-2704 s<.te ; . o) ~ s: > .01052540 2 $ io ~ SCEtO~)., R/E 914.93 933.60 1,026.96 oESC: ASSESS.NO -45000142 - ~ MAP NO: 45-16-1050-062. 1 ~1.)C AMOUNT DUE $914.93 $933.60 $1,026.96 406 FAIRVIEW AVENUE _ ACRES .040 DEED 00275J01943 z= Paid oa or After 7/o1/2oi2 9i o1%zo12 it/ol/2oi2 _I'_ Paid On Or Before 8/31 2012 10'31 2012 12 31/2012 LAND LESS THAN 1 ACRE RETURN ONE COPY WITH PAYMENT""IF TAXES ARE ESCROWED FORWARD RESIDENTIAL 1 FAMILY 1'G k10FiTGAGE C.O.""" =1.00 FEE FOR EACH ADD'L COPY OR RECEIPT `tF NOT PD BY 12/31/12 THIS BILL WILL BE RETURNED TO TAX CLM Eil'REA,U FOR COLLECTION 8 flLING OF A LIEN AGNST YOUR PROPERTY TAx CHINNIAH GNANACHANDRA M PAYER 506 ERFO~iD RD CAMP HILL PA 1 701 1-1 1 22 oFFlCE MONDAY-THURSDAY 9:OQAM - 4:OOPM HouRS: CLOSED FRIDAYS & HOLIDAYS PHONE (717)901-9392 If paying in installments use the coupons below to submtit paytta(nts. If paying in full use ONLY the 1ST coupon below to submit payment. _ Control No: 045-000069 i 1 I I~~ I~ 1 ~ ~I ~ ~ ~ 2012 Stalemert of Real Estate Taxes Biill Date: 7/01 /2012 PAYABLE Asseseted Land Improvement Mineral Total To: 'aaiuee~ 3'_.,400 B7, 000 0 118,400 DEBBIE LUPOLD, TREASURER EASY PENNSBORO AREA S.D. Discount Face Pe 98 S. ENOLA DRIVE, ROOM 101 ENOLA PA 17025-2704 Rates .Ol0Ei2540 .01052540 2 $ to ~ :iCIICOI, R/E____`_ 1,2x1.29 1,246.21 1,370.83 oesc: ASSESS.NO -45000107 MAP NO: 45-16-1050-027. TAX AMOUNT DUE $1,221.29 51,246.21 51,370.83 493 STATE STREET ACRES .350 DEED 00269/03185 if Paid On or After 7/ol/2oi2 9/01/2012 11/01/2012 If Paid On or Befors 8 31 2oi2 io 31/2oi2 12 31 2oi2 LAND LESS THAN 1 ACRE RETURN ONE COPY WITH PAYMENT"'iF TAXES ARE ESCROWED FORWARD MIxED RESIDENTIAVCOMMERCIAL ro MORTGAGE co.~~ 11.00 FEE FOR EACH AOD'L COPY OR RECEIPT IF NOT PD BY 12/31 /12 THIS BILL WILL BE RETURNED TO TAX CLM BUREAU FOR COLLECTION 8 flLMIG OF A UEN ACNST YOUR PROPERTY TAX CHINNIAH GNANACHANDRA M PAYER 506 ERFOI~D RD CAMP HILL PA 17011-1122 o~tcE MONDAY-THURSDAY 9:OOAM - 4:OOPM tiouRS: CLOSED FRIDAYS 8 HOLIDAYS PHONE (717)901-9392 If paying in installments use the coupons below to subltmit payme Ms. M paying in full use ONLY the 1ST coupon below to submit payment. I~~~f~l~ 2012 ~np PAYER COPY Bill NO: - - - 1119 - Control No: 045-000075 PAYABLE Itt of Reei Estate Tats BIII Date: 7/01/2012 TO: Asse69E:d Land Improvement Mineral Total DEBBIELUPOLD,TREASURER values 17,600 84,600 0 102,200 98 S. ENOLA DRIVE, ROOM 101 EAST PENNSBORD AREA s.D. pl~~ Face ENOLA PA 17025-2704 Rates .01052540 .01052540 2 ~ io ~ SCHOOL R/E 1,054.19 1,075.70 1,183.27 oESC: ASSESS.NO -45000461 MAP NO: 45-17-1044-224. TAX AMOUNT DUE 61,084.19 $1,075.70 51,183.27 1120 SECOND STREET ACRES .090 DEED 0026004326 If Paid Oa or After 7/0l/2oi2 9/ol/aoia li/oi/2o1a If Paid OA or Before 8 31 x012 10 31 2012 is 31 2012 PO LOT 45 RETURN Ott COPY WITH PAYk1ENT"`~ TAXES ARE l9CROM?® FORWARD RESIDENTIAL 2 FAMILY TO MORTGAGE CO.'-" 61.00 FEE FOR EACH ADD'L COPY OR RECEIPT `IF NOT PD BY 72/31!12 THIS BILL WILL BE RETURNED TO TAX CLM BUREAU FOR COLLECTION 6 FILING OF A LIEN AGNST YOUR PROPERTY TAX CHINNIAH GNANACHANDRA M PAYER 506 ERFOI~D RD CAMP HILL Pa 1 701 1-1 1 22 oPFtcE MONDAY-THURSDAY 9:OOAM - 4:OOPM rwuRS: CLOSED FRIDAYS & HOLIDAYS PHONE (717)901-9392 • ~~~~4 ~~~I~I~t ~ ~ 2012 m AX ~ fARYER CO''Y 3itt No: 1110T ontrol No: 045-000071 State ent o eel Estate Taxes Bill Date: 7/01/2012 PAV~etE ~„s =.s a.° : .3 Improvement Mineral Total 70: 7al~ie, ! 3:3 ;~1 104, 000 0 ' "__,2, 300 DEBBIE LUPOLD, TREASURER LAST I~IFJiNiSBO ~q pJ~ E{, 3. D. _ DisWU11t Face Penalt 98 S. ENOLA DRIVE, ROOM 101 ENOLA PA 17025-2704 a<<t • ~ 5 t) .01052540 2 $ is ~ i>CH~X2, 1,364.66 1,392.51 1,531.75 oESC: ASSESS.NO -45000284 MAP NO: 45-17-1044-061. ~'~~a);AMOUNTDUE----> $1,364.68 $1,392.51 $1,531.76 1439 SECOND STREET ACRES .230 DEED 00267/00165 ~ Paid On or After 7/ol/zol2 9/ol/zol2 11/01/2012 C:E Paid (hl Or HefOre 8/31 2012 10 31/2012 12 31 2012 LAND LESS THAN 1 ACRE RI "'U:IN ONE COPY WITH PAYN~NT"'IF TAXES ARE ESCROWED FORWARD 'rC ~ kit.+FtTGAGE CO."" 51.00 FEE FOR EACH ADD'L COPY OR RECEIPT RESIDENTIAL 1 FAMILY 'Ii 'VC T PD BY 12/31/12 THIS BILL WILL BE RETURNED TO TAX CLM BI iliE ~U FOR COLLECTION 8 FILING OF A LIEN AGNST YOUR PROPERTY TAX CHINNIAH GNANA PAYER 506 ERFOHD RD CAMP HILL PA 1701 1-1 122 OFFICE MONDAY-THURSDAY 9:OOAM - 4:OOPM iiouas: CLOSED FRIDAYS & HOLIDAYS PHONE (717)901-9392 i4 ..wvin.. in '.nQssile.a..fw ,.ea tim nn~y~~w~Mlnu~ 411n11 Sy~111VpLLt,J.3i11~ip l~ ~y; iy~~i ~ ,ua AMI ~ this 1CT t~tx~nn.. I~aL- f.+ m~i+...it a ...~-..f Control No: 009-001066 11~~1 I~III ~N~I ~ I 2012 Statement of ReaR COPY Bill No: 1111 PAYABLE Estate Taxes Bill Date: 7/01 /2012 Ael>aeasati .:ui~ t Improvement Mineral Total ro: V~iluea 33.701 45,600 0 129,300 DEBBIE LUPOLD, TREASURER ~gT plcN~1:ISBOR~ j ARE 413. D. Discount Face 98 S. ENOLA DRIVE, ROOM 101 ENOLA PA 17025-2704 Rs~t.ea ol05 a sa i .olo5zsaq z $ to $ SC:H;C10L FaL _ -_Y 1, 333.71 1, 360.93 1, 497.02 oesc: ASSESS.NO -09004345 MAP NO: 09-16-1051-042A Ti1X AMOUNT DUE $1,333.71 $1,360.93 $1,497.02 36 CREEKSIDE DRIVE ACRES .670 DEED 0026900092 t:: Paid On or After 7/o1/aolz 9/0l/2ola 11/01/2ola Paid (>a or Before a 31 sole l0 31 cola la 3L cola SOUTH ENOLA ~ HE1 tIRIJ ONE COPY WITH PAYWENT"`IF TAXES AftE E$CR0INED FORWARD LOT 1 PB 27 PG 63 1'O itOiTGAGE CO."" s'I.00 FEE FOR EACH ADD1 GOPY OR RECEIPT RESIDENTIAL 1 FAMILY 'IF I N)T PD BY 12/31/12 THIS BILL WILL BE RETURNED TO TAX CLM HUI tF.AiJ FOR COLLECTION lE FlUNG OF A UEN AGNST YOUR PROPERTY rAx CHINNIAH GNANA M PAYER 506 ERFO~iD RD CAMP HILL PA 1701 1-1 122 OFFICE MONDAY-THURSDAY 9:OOAM - 4:OOPM rauas: CLOSED FRIDAYS & HOLIDAYS PHONE (717)901-9392 If paying in installments use the coupons below to submit' paymen s. IF i+~iog in full use ONLY the 1ST t~ttpon bsfow b submit payment. rrr~.rarltt~,rr r~rn . ~ Control No: 045- 000073 N~II ~~~~1»~~ 2012 Stslermnt ofAReai CE~eI®e Taxes Bill Date: 7/01/2012 PAYABLE Asaeasei L3:nd Improvement Mineral Tatal ro: Values 25,300 84,500 0 109,800 DEBBIE LUPOLD, TREASURER EAST PENNSBORC /1REl :9 t) Discount Face 98 S. ENOLA DRIVE, ROOM 101 ENOLA PA 17025-2704 Rates , O1g5. 540 .01052540 2 10 ~ SCHOOL '.2/E'. 1,132.58 1,155.69 1,x71.26 oESC: ASSESS.NO -45000177 MAP NO: 45-16-1050-090. T/f.)f r~MOUNT DUE $1,132.56 $1,155.69 $1,271.26 502 STATE STREET ACRES .170 DEED 20082/ 1 1 72 If Paid On or After 7/01/2012 9!01/2012 11/01/2012 2f Paid Oa or Hefore a 31 ao12 10 3L cola la 31 Zola LAND LESS THAN 1 ACRE RETi 11RN ONE COPY WITH PAYIAENT"'IF TAXES ARE ESCROWED FORWARD RESIDENTIAL 1 FAMILY ro A IORTGAGE tb.""' i1.00 FEE FOR EaCN ADD'L COPY OR RECEB+'T `IF N CrT IpD BY 12/31!12 THIS BILL WILL BE RETURNED TO TAX CLM BUR EALi FOR COLLECTION ~ RUNG OF A LIEN ACiNST YOUR PROPERTY rAX CHINNIAH GNANACHANDRA M PAYER 506 ERFO~iD RD CAMP HILL PA 17011-1122 OFFICE MONDAY-THURSDAY 9:OOAM - 4:OOPM riouas: CLOSED FRIDAYS & HOLIDAYS PHONE (717)901-9392 • TAXING AUTHORITY: WEST SHORE SCHOOL DISTRICT WEST SHORE SCHOOL DISTRICT TAX YEAR: 2012-13 REAL ESTATE TAX NOTICE LEMOYNE BOROUGH ~ PAID TO: REAL ESTATE TAX NOTICE FAITH A. NICOLA, T/C (717) 781-7788 PAYABLE FAITH A. NICOLA, T/C (717) 781.7788 PROPERTY ID 870 HERMAN AVENUE SUITE 4 TO: 610 HERMAN AVENUE 8UITE 4 1221028715E LEMOYNE, PA 17045.1888 LEMOYNE, PA 17043-1888 ASSESSED VALUE LOCATION OF TAXED PROPERTY PROPERTY ID 109,100 1017 WALNUT STREET 1224026716E TAX SCHOOL HOMESTEAD EXCLUSION SCHOOL TAXES PAID AT assets ~ 1A~E 9.30 ON OR BEFORE FACE DATE 0 9.30 RE~ TE FACE pEp~gLTY HOMESTEAD EXCLU910 TY TE FARMSTEAD EXCLUSION 0 REBATE 994.34 BY 09/01/2012 984,$4 0 BY 09/01/201 gg4,34 REBATE FARMSTEAD EXCLUSION FACE 1,014.63 BY 11/01/2012 1,014.63 NET ASSESSMENT BY 11101/201 1,014.63 FACE 0 PENALTY 1,116.09 AFTERII/01/2012 1,116.09 109,100 AFTER11M7/201 1,116.09 PENALTY NETASSE98MENT 109,100 WEST SHORE SCHOOL DISTRICT TO: CHINNIAH, GNANACHANDRA M CHINNUIH, GNANACHANDRA M S06 ERFORD ROAD 606 ERFORD ROAD CAMP HILL PA 17011 CAMP HILL PA 17011 BILL DATE • 07/0112012 BILL # 039594 FOR: 1017 WALNUT STREET REBATE - 0 8101 /201 2 FACE -11/0 112 01 2 TAX YEAR: 2012.15 BILL DATE - 07101/12 BILL # 039594 DELINQUENT BILLS ARE TURNED OVER TO TAX CLAIM ON 12151!2012 TAXPAYER'S COPY TAX COLLECTOR'S COPY (lllll~j~~~t~ TAX PAYER COPY Bill No: 1118 1 (t Cornrol No: 045- 000074 PAYABLE 2012 Statement of Real Estate TeXee BIII Date: 7/01/2012 Assessed Land Improvement Mineral Total To: Values x0,900 8x,700 0 103 600 DEBBIE LUPOLD, TREASURER EAST PENNSBORO AREA S.D. Discowlt p~ Pe 98 S. ENOLA DRIVE, ROOM 101 ENOLA PA 17025-2704 Rates .0105x540 .0105x540 z ~ to ~ SCHOOL R/8 1,068.62 1,090.43 1,199.47 Desc: ASSESS.NO -45000371 MAP NO: 45-17-1044-143. TAX AAA()UNT DUE $1,068.82 51,090.43 $1,199.47 1306 THIRD STREET ACRES .040 DEED 00261!03967 If Paid on or After ~/ol/aolz 9/0l/2olx 11/01/2012 If Paid On or H fore 8 31 cola 10 31 cola 1x/31 aol2 PO LOT 39 RETURN ONE COPY WRH PAYIiENT'••IF TA7~ ARE ESCROWED FORWARD RESIDENTIAL i FAMILY TO MORTGAGE CO.'"•• x1.00 FEE FOR EACH ADO'L COPY OR RECEIPT 'IF NOT PD BY 12/31/12 TFi~ BILL WILL BE RETURt1ED TO TAX CLM BUREAU FOR COLLECTION 3 FILING OF A UEN AGNST YOUR PROPERTY TAx CHINNIAH GNANACHANDRA M PAYER 506 ERFO~D RD CAMP HILL PA 1 701 1-1 1 22 or-F~ce MONDAY-THURSDAY 9:OOAM - 4:OOPM I+ouRS: CLOSED FRIDAYS & HOLIDAYS PHONE (717)901-9392 If eavina in installments u~ the ccwpons below to submit payments. ff paying in full use ONLY the 1ST coupon below t0 ~bmit payment. 1012 SCHOOL REAL ESTATE TAR NOTICE Bill Dlate:07/01/2012 SU~ENITA SCI~OOL DLSTRICT CII~'M#: 15012-4 00183 M~It svILLE BOROUGH RETURN THIS TOP P IF PAYING IN Mak1e CIMx)c Payable To; Parcel 150,152.02-082.000 plop. Type R 1 6 V41IA,,LIA14I 31'RE~ET"R' T~ COLLECTOR MARYSVILLE, PA 17053 2~~OLN STREET A?ssessment: Hours: OFFICE HOURS 1 TO 5 JULY 10,11,12 L = 2 2 , 10 0 B= 9I, 400 AUG 2'x,28,29,30,31 OCT 29 30,31 DEC 15 T= 113, soo OTHERS BY APPT ONLY p}'iONE # 717-957-2502 T~ Deecrlpitlon FOR RECEIPT ENCLOSE SASE Amount SCHOOL REAL ESTATE 12.200OM Taxes are due and payment ~ 1.384.70 requested tbm: ~ ERFORD RO DACHANDRA M IF PAID BEFORE Aug- 31 - 2 $ PAY CAMP HILL PA 17011 1, 357.01 Sep-OZ TO Oct-31 PAY 1,384.70 AFTER Oct-31 +10~ PAY 1,523.17 2013 ANNUAL APPEALS ARE DUE IN ASSESSMENT OFFICE B ~~9ad~y~Tax Co~e.,ctor 12131/1011 UNPAID BILLS TO TAX CLAIM Ol /Ol /2013. envelope if return recellrt required. _ _T @ 'AX PAYcR C0='Y f3{P.I NO: 1115 ~ ~ .on?rol No: 009- 001070 ~~`II' ~~~~II~II~{~~ ~ 2012 Sta~mentof Real Estate Taxes dill Date: 7/01/2012 ppyewi~ ;+s9eB SEd :.3 ~c: Improvement Mineral _ Total rtr,T 'slues _ _ ` C__2: ~ 93,600 0 .43,600 DEBBIE LUPOLD, TREASURER 1°AST PENI~SBOR+_t ~,F'E'I, ~,D. ~ Discxsunt _ Face Penalt 98 S. ENOLA DRIVE, ROOM 101 Rates 5:5 ~ ~ .olos254o 2 ~ to ~ ENOLA PA 17025-2704 ~ 1,483.28 1,513.55 1,664.91 SCHOGL R/.; _ oESC: ASSESS.NO -09004699 _ ~{)i; AMOUNT DUE $1,483.28 $1,513.55 $1,684.91 MAP NO: 09-17-1042-005. I 198 CREEKSIDE DRIVE ACRES .900 DEED 00273+02455 Paid on or After 7/ol/aolz 9/ol/zoi2 11/01/2012 C: Paid On or Before 9/31 2012 10 31/2012 is 31 2012 SOUTH ENOLq I~ ~TU iN ONE COPY WFf'I1 PAYMENT•""'1F TAXES ARE ESCROWED FORWARD LAND LESS THAN 1 ACRE T) hK ~RTGAGE CO.'•`• 51.00 FEE FOR EACH ADD'L COPY OR RECEIPT RESIDENTIAL 1 FAMILY °I' NC T PD BY 12(31(12 THR4 BILL WILL BE RETURNED TO TAX CLM 13 IRE >U FOR COLLECTION ~ FILING OF A LIEN AGNST YOUR PROPERTY TAX CHINNIAH GNANACHANDRA M PAVER 506 ERF04~D RD CAMP HILL PA 17011-1122 o~cE MONDAY-THURSDAY 9:p0AM - 4:00PM rrouas: CLOSED FRIDAYS & HOLIDAYS PHONE (717)901-9392 If paying in installments uee the coupons below to submit pt~ymenls. I ` pe Grp in fuH use ONLY the 1ST coupon below to submit payment. - rrrlrYrrrrrrrrrrrr+M r,rrro.r~r err `11 1 f{1 Ik TAX PAYER COPY Bill NO: 1109 ~~I) li 111 1 ~ 2012 Sta/ement of Real Estate Taxes Bi InDat No~ ~7/Ot/2012 PAYAaIE Assessed Lind Improvement Minerai Total TQ' Values 161100 67 200 0 83,600 DEBBIE LUPOLD, TREASURER EAST PENNSBORO ~ REA S.D. Dis~wunt Face 98 S. ENOLA DRIVE, ROOM 101 ENOLA PA 17025-2704 Rates .0:052140 .01052500 a $ 10 ~ SCHOOL R,'E 862.32 879.92 967.91 oESC: ASSESS.NO -45000146 MAP No: a5-l s-1 o5o-oss. TA X AMOUNT DUE $862.32 $879.92 $967.91 404 STATE ROAD ACRES .060 DEED 00265/04697 If Paid On or After 7/ol/aoia 9/ol/zola 11/ol/ao12 _ _ If Paid Oa Or Before 8 31fa012 10 31 2012 12 31 2012 LAND LESS THAN 1 ACRE ~ IYETL'RN ONE COPY WITH PAYMENT'•'IF TAXES ARE ESCROWED FORWARD RESIDENTIAL 1 FAMILY 10 MORTGAGE COt•" 61.00 FEE FOR EACH ADD'L COPY OR RECENT •'F NI)T PD BY 12131/12 THIS BILL WILL BE RETURNEp TO TAX CLM EURE.AU FOR COLLECTION b FILING OF A LIEN AGNST YOUR PROPERTY TAX CHINNIAH GNANA PAYER 506 ERFO~D RD CAMP HILL PA 17011-1122 oPP~cE MONDAY-THURSDAY 9:OOAM - 4:OOPM rwuAS: CLOSED FRIDAYS & HOLIDAYS PHONE (717)901-9392 If paying in installments use the coupons below to submit rx+,~rtFetnts. If~ring in fu{{ use ONLY the 1ST coupon below to submit,payment. TAX PAYER COPY Bill No: 1120 ~ Control No: 009-001071 2012 Stabntent of Real Estate Tezes Bill Date: 7/01/2012 PAYABLE Assessed Ladd I To: mOrovemeat Mineral Total DEBBIE LUPOLD, TREASURER values _ 38, sap 149, sop o 1s7, sop 98 S. ENOLA DRIVE, ROOM 101 ""'"'g p"~ ~"'u°'~- ENOLA PA 17025-2704 EAST PENNSBORO AREA:i.D. Dboount Face Penal Rates .01052540 .01052540 a $ 10 3 DESC: ASSESS.NO-09004286 SCHOOL R/F 1 937.14 1,976.67 2,174.34 MAP NO: 09-16-1050-324. $omoetera nr~i~ 506 ERFORD ROAD ACRES .250 GEED 00253( 02930 TAX AMOUNT DUE $1,815.80 61,852.86 $2,038.15 & MARSHALL DRIVE RIDLEY PARK If Paid Oa or After 7/ol/zola 9/ol/zola 11/o1/sole LOT 1 BLK G PL 3 PB 14 PG 22 If Paid On or Bsfore s s1 Zola 10 31 sole is 31 Zola RESIDENTIAL 1 FAMILY RETURN ONE COPY WITH PAYMENT•'•IF TAXER ARE ts.SttROWt~ FORWARD TO MORTGAGE CO.'••• x.00 FEE FOR EACH AOD't COPY OR RECEIPT CHINNIAH GNANACHANDRAN M •IF NOT PD BY 12137!12 TFiLS BILL W~L. BE REfVtM1ED TO TAX CLM paYEa 506 ERFO~D RD BUREAU FOR COLLECTION 8 FILING OF A LIEN AGNST YOUR PROPERTY CAMP HILL PA 1 701 1-1 1 22 NOTICE OF PROPERTY TAX RELIEF a~ ~E MONDAY-THURSDAY 9:OOAM - 4:OOPM Your enclosed tax bill includes a tax reduction for your homestead and/or farmstead ++~.;os CLOSED FRIDAYS & HOLIDAYS PosPertY. AS at1 eYgible homestead and/or farmstead property owner, you have received ta:c relief through a homestead and/or farmstead exclusion which has been provided PHONE (717)901-9392 Assembly destgne~d to reduxc~ your peoperty taxesw passed by the Pennsylvania General r � ZCO 3Wa James J. Franklin r-n ter- I C I.D.No. 306458 rr-� Elizabeth S. Karnezos t xs TA C-) : I.D.No. 309234c McNees Wallace &Nurick LLC =' { 100 Pine Street P.O. Box 1166 Attorneys for Defendants, AmeriChoice Harrisburg, PA 17108-1166 Federal Credit Union and Dallas J Zulli (717) 232-8000 GNANACHANDRA CHINNIAH and IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION—LAW AMERICHOICE FEDERAL CREDIT UNION and DALLAS J. ZULLI, Defendants No. 2012 - 5469 DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFFS' AMENDED COMPLAINT Defendants AmeriChoice Federal Credit Union("AmeriChoice") and Dallas J. Zulli ("Zulli") (collectively, "Defendants"),by and through their attorneys, McNees Wallace &Nurick LLC, hereby submit the following Preliminary Objections to the Amended Complaint filed by Plaintiffs Gnanachandra Chinniah and Suganthini Chinniah(collectively, "Plaintiffs"). In support thereof, Defendants aver as follows: Background 1. The above-captioned dispute arises out of Plaintiffs' failed attempt to acquire a business loan from AmeriChoice for the purposes of refinancing Plaintiffs' existing business debt. See Exhibit 5 to Plaintiffs' Amended Complaint. 2. On September 4, 2012, Plaintiffs commenced this action by filing their Complaint. 3. Through the Complaint, Plaintiffs attempted to assert a single cause of action for breach of contract. A true and correct copy of Plaintiffs' original Complaint is attached hereto as Exhibit "A." 4. On September 24, 2012, Defendants filed Preliminary Objections to the Complaint, alleging that Plaintiffs' Complaint was legally insufficient, failed to state a proper cause of action, and included scandalous and impertinent allegations. 5. Following briefing and oral argument, on February 11, 2013, this Court sustained Defendants' Preliminary Objections and ordered Plaintiffs to file an amended complaint within twenty(20) days. A true and correct copy of the Court's Order is attached hereto as Exhibit "B." 6. On March 12, 2013, Plaintiffs filed an Amended Complaint, asserting three causes of action against Defendants: (1)breach of contract; (2) fraud; and, (3) violation of the Unfair Trade Practices and Consumer Protection Law("UTPCPL"). A true and correct copy of Plaintiffs' Amended Complaint is attached hereto as Exhibit "C." 7. Plaintiffs,through the Amended Complaint, fail to state a legally sufficient claim against Defendants for fraud and violation of the UTPCPL. 8. Plaintiffs,through the Amended Complaint, further fail to state any legally sufficient claim against Defendant Dallas Zulli. 9. Defendants now offer the following Preliminary Objections to Plaintiffs' Amended Complaint. -2- I. PRELIMINARY OBJECTIONS PURSUANT TO Pa.R.C.P. 1028(a)(2)—FAILURE TO CONFORM TO RULE OF COURT AND 1028(a)(4)LEGAL INSUFFICIENCY OF COUNT II AND COUNT III Failure to state a cause of action for fraud and violation of UTPCPL 10. Defendants incorporate paragraphs 1-9 of their Preliminary Objections, as if set forth in full. 11. Under Pennsylvania Rule of Civil Procedure 1028(a)(2),a party may file preliminary objections for failure of a pleading to conform to law or rule of court. See Pa.R.C.P. 1028(a)(2). 12. Pennsylvania Rule of Civil Procedure 1028(4)permits a preliminary objection based on legal insufficiency of a pleading. See Pa.R.C.P. 1028(a)(4). 13. Count I of the Amended Complaint asserts a claim for breach of contract against Defendants, specifically seeking damages for payments made by Plaintiffs pursuant to a conditional commitment letter between Plaintiffs and AmeriChoice. 14. Count II of the Amended Complaint asserts a cause of action for fraud against Defendants, again citing as damages the same payments made by Plaintiffs pursuant to a conditional commitment letter between Plaintiffs and AmeriChoice. 15. Count III of the Amended Complaint asserts a cause of action against Defendants for violation of the UTPCPL, alleging that AmeriChoice misrepresented appraisal values in the performance of its alleged contractual duties pursuant to the commitment letter. Plaintiffs explicitly include as their damages the same appraisal fees sought in Counts I and II of their Amended Complaint. -3- 16. Under Pennsylvania law, the "gist of the action" doctrine bars tort claims (1) arising solely from a contract between the parties; (2) where the duties allegedly breached were created and grounded in the contract itself; (3)where the liability stems from a contract; or (4) where the tort claim essentially duplicates a breach of contract claim or the success of which is wholly dependent on the terms of a contract. Hart v. Arnold, 884 A.2d 316, 340 (Pa. Super. 2005) (internal citations omitted). 17. Under the "gist of the action" doctrine, Pennsylvania law provides that tort claims cannot be maintained when they essentially duplicate an action for breach of a contractual obligation. A plaintiff cannot assert a negligence claim when that theory is merely another way of stating its breach of contract claim. 18. Plaintiffs'breach of contract claim, fraud claim, and claim for violation of the UTPCPL arise out of the same set of operative facts, namely, Plaintiffs' conditional commitment letter with AmeriChoice, Plaintiffs' payments of appraisal fees pursuant to the commitment letter, the appraised values of Plaintiffs' collateral properties under the terms of the commitment letter, and Plaintiffs' demand for reimbursement of the appraisal fees and other costs as damages as a result of the commitment letter. See Amended Complaint, Counts I, II, and II. 19. Because the gravamen of Plaintiffs' Amended Complaint is that AmeriChoice breached the terms of a contract between it and Plaintiffs, Pennsylvania's "gist of the action" doctrine bars Plaintiffs' tort claims that are grounded in the same alleged contract. WHEREFORE, Defendants AmeriChoice Federal Credit Union and Dallas J. Zulli request this Court to dismiss with prejudice Counts II and III of Plaintiffs' Amended Complaint. -4- II. PRELIMINARY OBJECTIONS PURSUANT TO Pa.R.C.P. 1028(a)(2)—FAILURE TO CONFORM TO RULE OF COURT AND 1028(a)(4)LEGAL INSUFFICIENCY OF COUNT III Failure to state a cause of action for violation of UTPCPL 20. Defendants incorporate paragraphs 1-19 of their Preliminary Objections, as if set forth in full. 21. Count III of the Amended Complaint asserts a cause of action for violation of the UTPCPL against Defendants regarding AmeriChoice's consideration of Plaintiffs' business loan request. 22. The UTPCPL provides that, "any person who purchases or leases goods or services primarily for personal,family or household purposes and thereby suffers any ascertainable loss of money or property, real or personal, as a result of the use or employment by any person of a method, act or practice declared unlawful may bring a private action to recover actual damages." Unfair Trade Practice and Consumer Protection Law, 73 PA. STAT. ANN. §201-9.2(a) (emphasis added). 23. In order for Plaintiffs to bring a claim under the UTPCL, Plaintiffs must be a consumer of services for personal, family or household purposes. 24. Plaintiffs fail to allege any facts supporting their averment that they were consumers of services from AmeriChoice for personal, family or household purposes. See Amended Complaint,136. 25. Plaintiffs' Amended Complaint and the exhibits thereto unequivocally demonstrate that the services they sought from AmeriChoice were for business purposes. -5- 26. Plaintiffs agree that at all times relevant to their Amended Complaint,they dealt with Dallas Zulli, AmeriChoice's Vice-President of Business Lending. See Amended Complaint, ¶ 3 (emphasis added). 27. As evidenced by Plaintiffs' Exhibit 3 to the Amended Complaint, the loan application executed by Plaintiffs was entitled "Member Business Credit Application," wherein Plaintiffs stated their gross annual sales and identified themselves as 100% owners of the business entity in question. See Exhibit 3 to Amended Complaint(emphasis added). 28. Exhibit 5 to the Amended Complaint,which Plaintiffs expressly incorporated into their Amended Complaint, further evidences Plaintiffs' desire to obtain "a business loan for the purpose of refinancing existing business debt," and confirms the commitment letter's terms for a loan of$1,400,000 for the purpose of refinancing existing debt. See Exhibits 3, 5 to Amended Complaint. 29. Except for Plaintiffs' personal residence, all of the properties used by Plaintiffs as collateral were properties leased by Plaintiffs to tenants in return for rental payments, i.e. business income. See Amended Complaint,¶¶ 19-20. 30. Plaintiffs' handwritten notes, attached as Exhibit 1 to Plaintiffs' original Complaint but omitted from the Amended Complaint, also describe and confirm their request as a "Commercial loan using . . . Rental Properties." A true and correct copy of Plaintiffs' handwritten notes, attached as Exhibit 1 to Plaintiffs' original Complaint, is attached hereto as Exhibit "D." 31. Second, the economic loss doctrine bars Plaintiffs' claim for violation of the UTPCPL, because, as Plaintiffs acknowledge, their claim sounds in contract rather than tort law. -6- See Amended Complaint, Count III—Violation of UTPCPL,T 36 ("[t]he services contracted for from Defendant AmeriChoice . . .") (emphasis added); ¶40 (averring that AmeriChoice's alleged actions and/or inaction was "a serious breach of contract terms . . ."). 32. Finally,to the extent that Plaintiffs base their causes of action on oral representations allegedly made by Defendants prior to executing the commitment letter (Defendants deny making such representations), consideration or introduction of such statements and representations are barred by the parol evidence rule. See, e.g. Amended Complaint,TT 28- 29. WHEREFORE, Defendants AmeriChoice Federal Credit Union and Dallas J. Zulli request this Court to dismiss with prejudice Count III of Plaintiffs' Amended Complaint. III. PRELIMINARY OBJECTION PURSUANT TO 1028(a)(4) LEGAL INSUFFICIENCY Failure to state a cause of action against Dallas J. Zulli 33. Defendants incorporate paragraphs 1-32 of their Preliminary Objections, as if set forth in full. 34. In their Amended Complaint, Plaintiffs name Dallas J. Zulli as a Defendant in the above-captioned action. 35. Plaintiffs,through their Amended Complaint, fail to state any cause of action against Zulli. 36. In Count I, Breach of Contract, Plaintiffs admit that the alleged contract was between only Plaintiffs and AmeriChoice. Amended Complaint,T 16. 37. In Count II, Fraud, Plaintiffs allege only that AmeriChoice's representations were false and that AmeriChoice's actions caused harm to Plaintiffs. Amended Complaint,T 29. -7- 38. In Count III, violation of the UTPCPL, Plaintiffs acknowledge that their alleged contract for services was only with AmeriChoice, not Zulli. Amended Complaint,¶¶35-36. 39. In the ad damnum clause for each count, Plaintiffs only demand relief against Defendant AmeriChoice, and never from Defendant Zulli. WHEREFORE, Defendants AmeriChoice Federal Credit Union and Dallas J. Zulli request this Court to dismiss Dallas J. Zulli as a Defendant in this matter with prejudice. IV. IN THE ALTERNATIVE,PRELIMINARY OBJECTIONS IN THE NATURE OF A MOTION FOR MORE SPECIFIC PLEADING PURSUANT TO Pa.R.C.P. 1028(,a)(2) & (a)(3) FAILURE OF THE COMPLAINT TO CONFORM TO LAW OR RULE OF COURT AND INSUFFICIENT SPECIFICITY 40. Defendants incorporate paragraphs 1-39 of their Preliminary Objections, as if set forth in full. 41. Pennsylvania Rule of Civil Procedure 1028(a)(3) permits a party to assert a preliminary objection for lack of specificity in a pleading. See Pa.R.C.P. 1028(a)(3). The pertinent question under Rule 1028(a)(3) is "whether the complaint is sufficiently clear to enable the defendant to prepare his defense," or "whether the plaintiffs complaint informs the defendant with accuracy and completeness of the specific basis on which recovery is sought so that he may know without question upon what grounds to make his defense." Rambo v. Greene, 906 A.2d 1232, 1236 (Pa. Super. 2006) (internal citations omitted). A. Plaintiffs' claim for fraud 42. In Count II of their Amended Complaint, Plaintiffs allege that AmeriChoice's conduct was done with reckless indifference and malicious intent to harm Plaintiffs, and thus allegedly support a claim for punitive damages. -8- 43. Plaintiffs fail to allege any specific facts in the Amended Complaint that would support averments of reckless indifference or malicious intent to harm by AmeriChoice. 44. Without specific facts supporting these averments, Plaintiffs cannot maintain a claim for punitive damages under Count II of the Amended Complaint. B. Plaintiffs' claim for violation of the UTPCPL 45. In Count III of the Amended Complaint, Plaintiffs merely recite statutory language alleging that AmeriChoice "caused a likelihood of confusion and misunderstanding as to the source, sponsorship, approval or certification of services." Amended Complaint,137. 46. Plaintiffs fail to allege any facts specifying how they allege AmeriChoice violated this standard, and fail to allege how AmeriChoice's review of the appraisal reports constituted confusion or misunderstanding "as to the source, sponsorship, approval or certification of services." See Amended Complaint,¶39. 47. Plaintiffs further allege in Count III that AmeriChoice engaged in a "pattern of deception and misrepresentation in the lending process," "a pattern of willful deception and misrepresentation," and a "pattern of deceit," but fail to plead any facts evidencing or suggesting any such "pattern(s)." Amended Complaint,1141-43. 48. Plaintiffs cannot rely on such general and unsupported statements to support their cause(s) of action, and such general and unsupported statements are not sufficiently clear to enable Defendants to prepare a defense to Plaintiffs' claims. WHEREFORE, to the extent the Court does not dismiss Plaintiffs' Count II and Count III of the Amended Complaint with prejudice, Defendants request that this Court order Plaintiffs to file a more specific pleading. -9- V. PRELIMINARY OBJECTION IN THE NATURE OF A MOTION TO STRIKE PURSUANT TO Pa.R.C.P. 1028(a)(2)INCLUSION OF SCANDALOUS OR IMPERTINENT MATTER 49. Defendants incorporate paragraphs 1-48 of their Preliminary Objections, as if set forth in full. 50. Pennsylvania Rule of Civil Procedure 1028(a)(2)permits a preliminary objection to a complaint containing scandalous or impertinent matter. See Pa.R.C.P. 1028(a)(2). 51. Upon review of Defendants' Preliminary Objections to Plaintiffs' original Complaint,this Court ordered that Plaintiffs not include any scandalous or impertinent language in any amended pleading, specifically noting Paragraphs 27, 29, and 30-31 and portions of Paragraphs 28 and 32 of the original Complaint were scandalous and impertinent. See Exhibits A and B hereto. 52. The aforementioned Paragraphs of Plaintiffs' original Complaint, inter alia, included reference to Zulli's affiliation as a Director of Ambulance Service for East Pennsboro Township,the latter's status as a defendant in two pending lawsuits involving Plaintiffs, and Plaintiffs' belief that this connection represented a conflict of interest. 53. Despite the Court's direction that Plaintiffs'not include such scandalous and impertinent language in any amended pleading, Plaintiffs' Amended Complaint includes almost verbatim allegations. See Amended Complaint,TT 4-6. 54. Not only do these allegations remain scandalous and impertinent, but their inclusion in the Amended Complaint represents a direct violation of this Court's Order. See Exhibit B hereto. -10- i t WHEREFORE,Defendants request that the Court sustain their Preliminary Objection and strike Paragraphs 4-6 from Plaintiffs'Amended Complaint, and sanction Plaintiffs in a manner that the Court deems just and proper in light of Plaintiffs' violation of this Court's Order dated February 11, 2013. Respectfully submitted, McNEES WALLACE 'LC By ames J. Franklin I.D. No. 306458 Elizabeth S. Karnezos I.D.No. 309234 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Phone: 717 232-8000 Fax: 717 237-5300 Email: jfranklin @mwn.com Dated: March 28, 2013 -11- r GNANACHANDRA CHINMAH :IN THE COURT OF COMMON PLEAS OF and SUGANTHINI CHINNIAH, :CUMBERLAND COUNTY,PENNSYLVANIA Plaintiffs V. :CIVIL ACTION—LAW ` at:•7 rn (Ar-- "or*, AmeriChoice Federal Credit Union r- x r' .--E-7 X* o and DALLAS J.ZULLI :No.2012- ?;+ Q Z5 ach Defendants NOTICE You have been sued in Court.If you wish to defend against the claims set forth in the following pages,you must take action within twenty(20)days after this Complaint and Notices are served,by entering a written appearance personally,or by attorney,and filing in writing with the Court your defense or objections to the claims set forth against you. You are warned that if you fail to do so,the case may proceed without you,and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE.IF YOU DO NOT HAVE A LAWYER,OR CANNOT AFFORD ONE,GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association T1tUE COPY FROM RECORD M Tsstw'ony**Wrssl,t t»O Wft sat WV I hwW TW 20 sfld Yla d aald t�Ml it .�. GNANACHANDRA CHINNIAH : IN THE COURT OF COMMON PLEAS OF and SUGANTHINI CHINNIAH. :CUMBERLAND COUNTY,PENNSYLVANIA Plaintiffs V. :CIVIL ACTION—LAW AmeriChoice Federal Credit Union and DALLAS J.ZULLI :No.2012- yl� Defendants COMPLAINT AND NOW,this 4h day of September,2012,come the Plaintiffs,Gnana Chinniah a/k/a Gnanachandra Chinniah and Suganthini Chinniah hereby files this Complaint for Breach of Contract and in support thereof,state as follows: 1. Plaintiffs,Gnanachandra Chinniah and Suganthini Chinniah,are adult individuals who live at 506 Erford Road,Camp Hill,PA 17011,in Cumberland County. 2. Defendants,Dallas J.Zulli,VP Business Lending,and AmeriChoice Federal Credit Union are based at 2175 Bumble Bee Hollow Road,Mechanicsburg,PA 1 7055. 3. On or about.tune 13,2012,Plaintiffs submitted their credit consolidation loan proposal for$400,000 to Dallas J.Zulli,VP Business Lending with AmeriChoice Federal Credit Union(Exhibit I-Original handwritten proposal using 3 collaterals). 4. On or about June 19,2012,Defendant Dallas Zulli had the plaintiffs to complete an "AmeriChoice Member Credit Application"for$400,000 against three(3)residential rental properties as collaterals(Exhibit 2—Formal Loan Application). 5. On or about June 22,2012.Defendant Dallas Zulli wrote an email to Plaintiff Gnana Chinniah with suggestion to include more properties/loans in the loan consolidation to meet Defendant Lender's requirements,and to improve cash-flow of the Plaintiffs. 6. On or about June 25,2012,Defendant Zulli provided a"Counter Proposal"for$1.4 million credit consolidation,taking fifteen(15)residential rental properties as collaterals, and provided a spreadsheet numbers(Exhibit 3-Spreadsheet and emails). 7. Although Plaintiffs were concerned about the"Estimated Closing Costs"of$22,365 in the spreadsheet provided,Defendant Dallas Zulli convinced the plaintiffs with the counter proposal for$1,400,000 loan which involves the cost of appraisals and title search/insurance of fifteen(15)properties,instead of three(3)properties as in the plaintiffs'original consolidation loan application for$400,000,dated June 19,2012. 8. On or about July 7,2012, Defendant Dallas Zulli requested the Plaintiffs to submit an "Updated Application and Personal Statement" (Exhibit 4—Email from Zulli). 9. On or about July 9,2012,plaintiffs submitted another"AmeriChoice Member Credit Application"for$1,400,000 at the request of Defendant Dallas Zulli,on a►good faith that the counter proposal for this increased loan that requires significantly higher closing costs would serve the very purpose of the credit consolidation(Exhibit 5). 10.On or about July 10,2012,Defendant Dallas Zulli provided a"Commitment Letter" for loan in the amount of$1,400,000 for"Refinancing Existing Debt'(Exhibit 6). 11. On or about July 20,2012,Plaintiffs signed the loan commitment letter and provided a check in the amount of$2,100 to AmeriChoice towards$6,300 Appraisal Cost. 12.On or about July 20.2012,Defendant Dallas Zulli sent the signed"Commitment Letter"to Attorney Gregory Reed,Esq.and authorized the title search for closing. 13. Between July 30 and August 2,2012 a real estate appraiser chosen by Defendant Dallas Zulli, Ms. Pamela Reitenbach,and her unidentified"assistant"conducted the inspection of the fifteen(15)residential rental properties,taking numerous pictures. 14.At the request of the appraiser, Ms.Reitenbach,Plaintiffs provided her with copies of the existing appraisal reports for the properties that included the floor plan of these properties so the appraiser can save time in measuring the individual living areas etc. 15.Plaintiffs also provided the appraisers with details as to specific rental agreement details for each unit,utilities,and tenants specific situations to coordinate inspections. 16. Upon completion of the inspection of all of the fifteen(15)properties,on or about August 8,2012,plaintiffs paid second installment of$2,100 towards the appraisal fee. 17.Plaintiffs have been providing all the necessary information and clarifications to Defendant Dallas Zulli,and the Closing Agent,Attorney Gregory Reed,Esq.and followed up with the status of the appraisals and settlement date(Exhibit 7•Emails). 18,On or about July 27,2012,upon follow up phone calls and email from Plaintiff Gnana Chinniah,Defendant Dallas Zulli called the Plaintiff and stated only 10 out of I S appraisal reports were completed;and those values were"way lower than expected values",and the balance$2,100 needed to be paid for the remaining appraisal reports' completion to see if the grand total of appraisals meets"target value of$1,750,000'. 1 a 19. When Plaintiffs questioned about the appraisal values and specifics of the reports. Defendant Zulli indicated that those collaterals were"mubstandard"requiring maintenance,and AmeriChoice Federal Credir union was not going to close the loan. 20. Upon the request of the Plaintiffs for written explanation from the Defendants for their refusal to provide the loan,on or about August 30,2012, Defendants' legal counsel,Attorney Darrel C.Dethlefs sent a letter explaining Defendants'reasons for the revocation of the loan commitment and refusal for refund $4,200 paid(Exhibit 8). 21.Plaintiffs strongly disagree with Defendants' interpretation of the ten(10)appraisal reports and their assumption that"projected grand total"of fifteen(15)appraisals would be less than the target value of$1,750,000(Plaintiff's Estimate$2,190,000), 22.Defendants obtained the appraised values for only ten(10)properties that included four apartments each 2-Units,and six (6)single family residential properties totaling 14 Units out of the total 25 Units included in the fifteen(15)collateral properties. 23. Defendants or their agents have not completed the appraisal reports foi the remaining two apartments each 4-Units and three single family houses including the Plaintiffs' primary residence totaling another l 1 Units when Plaintiffs have paid$4,200 so far., 24. Plaintiffs were acting on a good faith,and allege that that the defendants'retusat to complete the remaining appraisals,and to discuss options to modify the loan amount to meet their ratio of 80 percent loan to value is a serious breach of contract terms. 25.Plaintiffs allege that the appraisals reports/values should have been "manipulaaFri"by the Defendants or their agent for the purpose of projecting a"grand total value" which is short of the target value of$1,750,000 for fifteen(15)collateral properties. 26. Plaintiffs have a strong evidentiary basis to prove that at least five(5)of the appraised property values are significantly lower than the Tax Assessment Values established by the Cumberland County,while the remaining five(5)values are slightly lower. It should be noted that ratio of Tax Assessment Value to Fair Market Value of the properties in Cumberland County is almost 1.0 based on published data for Counties. 27. Plaintiffs also allege that Defendant Zulli's affiliation as a Director of Ambulance Service with East Pennsboro Township which is a Defendant in two(2)separate active lawsuits at the Cumberland County Court, and United States District Court for the Middle District of Pennsylvania is a serious conflict of interest which must have influenced his"hidden agenda"to cause significant out of vocket expenses so far. 28. Plaintiffs also allege that the appraisers'questionable conduct such as taking pictures of personal belongings of several tenants and at the primary residence of the Plaintiffs located at 506 Erford Road,Camp Hill while refusing to provide the loan or refund of the appraisal fees of$4,200 paid so far and out of pocket expenses related to the title work by Attorney Gregory Reed etc amount to serious unfair business practices. 29.Plaintiffs also allege that the"assistant"to the Appraiser Ms,Pamela Reitenbach was very rude with the plaintiffs who also received some complaints and concerns from tenants as well,as to the purpose of numerous photos takes in each unit and how they would be disseminated or used by the Defendants or their agents,if not for this loan. 30. Plaintiffs wish to bring to the attention of the Honorable Court that at least eight(8) of the rental units for which the appraisals completed have been leased to the Housing Authority of Cumberland County and have been inspected annually and passed their inspections,and are well maintained by the Plaintiffs as these tenants are long-term. In addition,Plaintiffs are saddened by the appraiser's failure to give any credit for the new carpeting and fresh painting at two of the rental units at the time of inspection. 31. Defendants' attempted justification for their denial of the loan on the basis that the slightly dirty carpets/flooring/walls in few of the units where special need people live I s highly regrettable,and Defendant Zulii should be ashamed as a Director of Ambulance Service who should not attempt to penalize those tolerant landlords. 32. Plaintiffs strongly allege Defendant Zulli's and AmeriChoice Federal credit Union's breach of commi.,larmtto lend the Plaintiffs on unfounded/baseless nroiection of The appraisals,and their refusal to refund$4,200 paid,when coupled with Defendant Zulu's affiliation with an another Defendant in two(2)separate lawsuits involving the Plaintiffs,are unfair,deceptive,and predatory business practice and scam that must have been premeditated and nnlitically motivated with a small town mentality. WHEREFORE Plaintiffs respectfully requests this Honorable Court enter an order enforcing the loan commitment upon completion of the remaining appraisal reports, revising inaccurate appraisals using data from acceptable sources including tax assessments and/or independent appraisals OR fully refund the appraisal fee paid and other out of pocket and leeal exvenses incurred,and destroy or return all photographs ana any other information obtained dunffgthe inspection of the properties as the Plaintiff's and some of their tenants have serious privacv and safety concern,, Gnanachandra Chinniah,Plaintiff Suganthini Chinniah,Plaintiff 506 Erford Road Camp Hill,PA 17411 (717)732 6273 chinniahg@hotmaii.com f EXHIBIT 1 C►�!!�+t-`,_ w,.w�%s,,�i-�..ei`_i,5 .,_ �.rti,.txi �'y �,o�►'�'ty ./E��t�7t G11�+t+�1 400 K r"r P n-t m�� t,w.,-A 3 Ra"orwe F i-Olp 6 t. 4-6,00- 4-!o8 L ,4.✓e �- F'�t f 7a'5 S v 30o K r 10 17 L V54 Sb, cvv F _.._._. ._...w � 8G�1 :r' ism' � �•�+"'^"'' �G�e�t ���-� ._,. .#� S o, p pp .- r Prrm.srit.•t ;t 4771 # 1'' t D0 0 d G 0 � 15c 3 - Sr.�-mss C.��,�-- r�- �57-� is �t', 3cCy r✓-�rG, - ?nom I� tc �777d g►�..,�y J C'C�C� tili�.r x P75 �7 rg .. � ' �bao '�'i°'ea8' �-i•.r+�,'...�,.� A•,rr�'... �,�-u�F� z�s,� T.l,�.,.,� �r �$�o •� �} 7.55-exs Zs L �'�-,�� •�. `%-��V 15a� �3b2 t I87�.z21 � �s -7 7 ca '°° -3�-�cs c ! ...=� �'.rx.,,,•,�-• ° �",rte �v,r'�-�.�e �'�►-.�r�'�•�'s � •¢5 5b' �s Zo 00 ep Schedul*of RUI fttate Owned by Gnana Chinnia>h & Suganthitnihinniigh, Address of Property Type of Mortgage Company or 2010 Manthly Mortgag Approx monthly Property Lien Holder Name Market Rental Payment/ Loan Equity Value Income Month Balance Increase 506 Erford Road Single First Horizon'Horne Ln 5225,000 Home � r SE. S OI IkW Cam Hill PA 17011 Fa' Int i Bank CL SIS 000• S 4600—4609 Linden Ave 4-Unit National City Mortgage 8300,000 52830 S q Mechanicsburg,PA 17455 Res.A tint In Bank �z S7} 1 277 576-580 W.Louther Street 4-Unit National City Mortgage $250,000 52995 $1716 S+t+, 60 . j:M ft t Carlisle PA 17013 Res.A tmt Commerce Bank LOC S200 $30.000 120 N.Second Street 2-Unit Chase Home Finance $125,000 51455 594913; 966,188 Enola,PA 17025 Res.A tmir Wilmer&Patricia Harris S290 517.000+/- 224-226 Lincoln Street 2-Unit First Horizon Home Lon S130,000 51525 99551 3 6};'i8855, Mnsville,PA 17053 Res. trot Integrity Bank CL1 $10,0000 493 State Street 2-Unit Chase Home Finance S125,000 S1575 so "40q.so" Enola PA 17025 Res.Alptmt 4 11 Water Street 2-Unit America's Servicing Co. $1251000 51465 8M891 563;488,5 Ajlv)3814 ! New Cumbind,PA 17070 Res.A tmt Integrity Bank LOC $100 574,000 306 Third Street Single First Horizon Home 5120,000 5950 $'W 3MM 459- Enola PA 17025 Family Loan $13 439 N.Second Street Single Chase Home Finance $135,000 $1025 5848 bL•t ss ?age 6-0 Enola,PA 17425 Family Integrity—Bank CL20 S25 0004 1017 Walnut Street Single Chase Home Finance 5120,000 5920 5963774 '553};396 4R, 0 3+I-s Lemoyne,PA 17043 Family Integrity Bank CL2# S25,000# 404 State Street Single Chase Home Finance 580,000 $775 5602 S3f;999-3401 7i*. Enola PA 17025 Family Integrity Bank CL1' 510000+' 198 Creekside Or Single Integrity Bank $150,000 51000 CL1* SI10,000* 535• Enola,PA 17025 Family 36 Creekside Dr Single America's Servicing Co. 5140,000 $1000 3846 f3$ 4&FM59, Enola PA 17025 Family InLegity Bank CL I* $15,000' 406 Fairview Avenue Single Bank Of America LOC 590,000 5795 $273 574,000 0 Enala,PA 17025 family 502 State Street Single integrity Hank 575,000 5795 CLI* 555,000" • Enola PA 17025 Family 3 Cassatt Street 3Unit twn Commerce Bank,Hbg 5250,0001" 52700 51953 $4437886Y $66 Enola PA 17025 House/A '" i•'B,8o0 11-jL-) 100-102 Wyncote Ct. 2 Unit Wilmer&Patricia Harris $132,000 $1390 5843 548+,4186- 350 Mechantesbur PA 055 Resid.A t Boiling S tin PA 17007 430 N.B et Vacs Tasc.Sala-Ptrreltase S34 520 ,-•-- $50(tax 0 PA 17013 n mltrrtena .514A Total- 19 Pro erties I 29 units _ S46001000 520-,6--9-5 519,037 S1,365,450 si69d Credit,Card Obligations totals S25,000. Personal assets including Sank Deposits&paid off Autos(2)totals 525,000. Auto loan 529,000, Therefore, Net Worth-S2,600,000+$25,000-SI,365,450 4221,000-SI IS,008-554,000-S868,000. CLI* and CL2#are Commercial Loans with integrity Bank in the amounts of$240,000 and$123,008 on a 20 year amtzn and the monthly mortgage payments are 51804 and$939,respectively. Current Balances are$ &St I5, 0 respectively. Loan balances are assigned to the collateral properties to reflect the total approx mat " IJr1'S-'l Please note that most first mortgages are IS year fixed,and payments include taxes and insurance except as noted below: Total taxes and insurance for 406 Fairview Ave should be approximately S 1380/year and the same for 502 State Street should be approximately S I3501year. Taxes and Insurance for 198 Creekside Dr;should be approximately 521801year. *`3 Cassatt St,Enola property is under construction(80%complete)—Expected to be//illy rented by end of 2011. Townhouse has SBR,3.5BA,each apartments has 3 BR,2.5BA,and an additional lot for one more townhouse at a later date. Property has total 10 off street parking,Each unit has central air and all new appliances.Taxes&Insurance total S3000/year. EXHIBIT 2 , Ir[G E R A L f R E C 1 r U N I O M I O PROCESS V 115 APPLICATION,ALI REQUESTED INFORMATION MUST BE PROVIDED x New Request Renewal _ Modification MEMBER BUSINESS CREDIT APPLICATION Cont nv LMat Name:C3narra Chtnntrh _Ttste one Number.717132fi2113 ? Camtranv Address:506 Word Road Ctrl.Camp Hill S PA 7�17011 _. _� ..._. to Company Mailing Address: l CC;!) Stale: 1 T_ig Are Facilities O wned or Leased: �w I Monthiv Paav_mvnt, S _ � ; Years in Business Tan ID Number. ' T e of Business(IrAICS): I Gross Annual Sales: $240,000_. 01alusiness X . Proprietor Partnership 1 E S- C-Curporadon Limited i.iubHim Carprt:amp. C would y2u like to borrow and what are the requested repayment terms?E400,000 I Term:20 Yrs How are you using these funds?:Credit Consolidation W is ur co d value": Sound Inveatt»entlRealal P it s wank over x54#1 I Name Title Percent a of Clwnership G anon C hinntah and S!gmhini Chinniah Owners 1 100% .. Lender 1 Type of Loan Current Balance monthly Payment Secured by Itleaste sec anached schedule of Real i c r Estate owned by the t:hinniaha S I S _.� S S _ .._.... Totals' � 3 Any unsettled lawsuits,judgments or disputes?: X I Yes No 1f yes,what and why:Plaintiffs in a Civil Rights lawsuit that is very likely to settle or get s jury verdict favorably to the borrowers Bankruptcy ever filed by business?: Yes X No Ifyes,wizen?: A o raise ?: Yes X No If yes,why?: Ssrviee Yes No If es,Nacre of Provider. Checking Account X Balance: S10,000 Savings Account Balance: S Cash Management i Other Thu Credit Union may check credit and trade references in MVW;tta this applicYiot,and disclose information about its credit experience with applicant,its authorired by law. This Credit Union may also check the personal credit history of the principal owner(s)andlor key individwl(s), in addition to the inforn orlon requested on this application,this Credit Union may subsequently request additional information from the applicant. Appi ent authorises&a Credit union to disclose this infamaden contaiaal is ibis appiieafte.may eradit report and pereeaai llamaciai Worraaelon with tht Credit ttaloa*s Servieer solely fa the purposes of usderwrielae ibis laan. A t .1 "is a IN r As an authorised agent of the applicant company.I have stated that everything in the application and information submitted along with the application,is true. t(we) that this Credit Union may provide information about me(us)or m (our)account to others. 7 Gnana Chinniah 15,42,,12— Authorized Signature(Must be an Officer of Company) Printed Name Title Date (, •L Suganthini Chinniah I q 1 ) Authorized Signature(Mast bean Officer of Company) Printed Name 'Tide Date EXHIBIT 3 . s P ed Debt Monthly Annual Total Private loan(Haft)-Wyncote $ 84 . 0 5 10,116.00 $ 99.500.00 Metro(Commerce)-Cassatt $ 1,953.00 $ 23,436.00 $ 128,800.00 Honda Auto $ 535.00 $ 6,420.00 $ 24,700.00 Consolidation Loan $ 9,446.00 $113,352.00 i 1,392,919.00 Total $ 12,777.00 5153,324.00 $ 1,645,919.00 Consolidation Loan Estimated MV $2,1100.000.00 AmeriCholce would require a first Estimated Loan Amount $ 1,392,919.00 hen mortgage security interest in all Amortization 240 properties except for Wyncote and Interest Rate 5.25% Cassett. The auto loan was left out, Estimated Payment $ 9,446.00 however,if you want to Include that payoff you should have enough equity in the read estate. Estimated Closing Costs The estimated closing costs do Loan Origination $ 7,006.00 not include any prepayment Recording Costs $ 500.00 penalties. t do not know It any of Flood Certifications $ 375,00 the bans to be paid off have such Tax Monitoring Costs $ 1,425.00 penalties. I imagine the Appraisals $ 6,525.00 commercial loans might have Title Insurance $ 5,790.00 penalties, but could have run their Loan Documents $ 500.00 course depending on how long Misc. Fees $ 250.00 ago they were taken out. otal $ 22.365.00 --' -- Difference in Monthly Cash Flow $ 8,381.00 Debt Monthly Annuli Total Est.Value ASC-411 er $ 891.00 $ 10,692.00 $ 58,500.00 $ 12 ,000.00 ASC-36 Creekside $ 938.00 $ 11,256.00 $ 59,300.00 $ 140,000.00 Metlife(1st Horizon)-306 3rd S 813.00 $ 9,756.00 $ 83,000.00 $ 120,000.00 BOA-406 Fairview Ave $ 236.00 $ 2,832.00 $ 75,000.00 $ 90,000.00 Nation(1st Horizon)-Primary $ 1,356.00 $ 18,272.00 $ 121,000.00 $ 225,000.00 Nation(1st Horizon)-Lincoln $ 1,063.00 $ 12,756.00 $ 55,800.00 $ 130,000.00 PNC(Nat'l City)-1st on Louther $ 1,838.00 $ 22,056.00 $ 105,000.00 $ 250,000.00 Chase-493 State $ 960.00 $ 11,520.00 $ 58,500.00 $ 125,000.00 Chase-120 N.2nd $ 937.00 $ 11,244.00 $ 60,700.00 $ 125,000.00 Chase-404 State $ 586.00 $ 7,032.00 $ 34.500.00 $ 80,000.00 Integrity-502 State&198 Creek $ 1,804.00 $ 21,648.00 $ 213,700.00 $ 225,000.00 Private Loan(Harris)-Wyncote $ 843.00 $ 10,116.00 $ 99,500.00 $ 132,000.00 Metro(Commerce)-Cassatt $ 1,953.00 $ 23,436.00 $ 128,800.00 $ 250,000.00 PNC Bank-Linden $ 1,982.00 $ 23,784.00 $ 127,255.00 $ 300,000.00 Chase Bank-1017 Walnut $ 774.00 $ 9,288.00 $ 48,889.00 $ 120,000.00 Chase Bank-493 State $ 861.00 $ 10,332.00 $ 50,243.00 $ 135,000.00 integrity LOC-411 Water 2nd $ 100.00 $ 1,200.00 $ 24,000.00 $ - Integrity Bank-Various in 2nd $ 939.00 $ 11,268.00 $ 111,539.00 $ - Metro LOC-2nd on Louther $ 278.00 $ 3,312.00 $ 31,100.00 $ - Private Loan(Harris)-120 N.2nd $ 290.00 $ 3,480.00 $ 17.000.00 $ - Honda Auto $ 535.00 $ 6,420.00 $ 24,700.00 BOA Credit Card $ 18.00 $ 216.00 $ 1,833.00 Lowes Credit Card $ 52.00 $ 624.00 $ 1,768.00 BOA Credit Card $ 169.00 $ 2,028.00 $ 7,950.00 BOA Credit Card $ 444.00 $ 5,328.00 $ 18,200.00 Sears Credit Card $ 135.00 $ 1,620.00 $ 4,266.00 Mist FCU Credit Card $ 90.00 $ 1,080.00 $ 4,511.00 Home Depot Credit Card $ 142.00 $ 1,704.00 $ 12,000.00 Metro Credit Card $ 133.00 $ 1,596.00 $ 5,000.00 Total �_- $21,158.00 $253.896.00 $ 1,623,554.00 $2,572.000.00 ^ ' .""."^ . ^"". ."=^­*L;c Page \ of-5 RE: update DellasZm\i(czuDi@an)ehchoiceorg) Mon 6/2�/l�3�O4P�� GoanaChinniah(chinniahg@hotmaiicom) Iartachment Gnana. I've attached a spreadstipet outlining the debt consolidation loan we discussed. Once you've had o chance ho review it please give mea call with any questions, Thanks. Dallas J.Zo|U vP Business Lending AmeWChoice Federal CnedkUnion 2175 Bumble Bee Hollow Road Mechanics burg,PA 17055 Phone(717)591-1Z88 Fax(717)G87-3/13 Email AmrhChoice Federal Credit Union and all its mvn�#�e loan or�ioutmsam�gimemdwhhthe Nmiuow�� Mortgage Licensing System.o free service fip consumers tn confirm that the mongaggo company ormou-,cge pm|e*xiona|v;th whom/he%-wish m conduct business islicensed. Licensing information can 6w obtained:t . Mv license number is: 543848 hap://sril 22Nx,,sntl22.mail.live.com/maii/PrintMessages,,ispx?cpidserg3eeba89-bef8-1 lei-... 61/2 920 12 riuuxtait j,nnt!vtessav Page 2 of 5 stice• Thl mti..otsati«+ti:..rtnsi:•d In thin..+.•..n:.r�.:.r lrc tr.i..t.g..J. .nti.avndnl,..uJ t>:u1cc ICd floret t ix t"nurr. If the reitdc.-of this tnctsaee is not the intended recipient, ,oti are hervb% rimitied.t#tat rim disscntinatiorl. distrit,irtion.or cop ing orthis coninlunirltian i",stied-. prohibited. It'Non halve rerekvd this ranutnatlicantan in error.please notify us intniediatek b, reply in-to t}tis message,and then delete is from}ottr computer. Atl e-mail :,ent to this address ti ill he receix cd bN,AmcriChoice`s corporate c-snail s}stern a11d is stibieet to archiving a:xi rck ioN b.\ Someone other 111011 the recipient. From: Gnana Chinniah[mailto:chinniahg@hotmail,com] Sent: Friday,June 22, 2012 5:16 PM To: Dallas Zulli Subject: RE: Update Dear Dallas, Sorry I did not have a chance to read your email until I came home at 5:05 pm. I am open for further consolidation if you want to shyest a group of properties/loans so we can discuss. I am open to consolidate 306 Third Street together with the 3 properties that 1 have provided. I will come up with some more alternatives so we can try to meet your numbers/ratios as you are a very smart banker and helpful. You can call me at my office phone number on Monday or I will stop by noon after speaking to you in the morning. I have a surgery scheduled on July 11th which will likely require 2 or 3 weeks of recovery time. So please help me close this before 10th,if possible. Have a Good Weekend, Regards, Gnana Subject; RE: Update IJate: Fri, 2.2 Jun 2012 13:33:40-0400 From, dxulli@americhoice.org To: chinniahg @hotmail.com G.nana, We pulled credit(which was fine)and reviewed the entire financial package this morning, As stated before,the proposed loan and respective property numbers took good:however,the overall debt requirements may be prohibitive and require further consolidation. I'd like to dtscuss consolidating additional properties/loans to improve the global debt coverage. As presented, the debt service coverage ratio is coming up short of our loan policy requirement I think further consolidation may give you more flexibility,improve your cash flow each month and allow us to payoff your credit cards and http: i'stiI22w.snt]22.mail.live.coni/maiLPrinthlessa&les.asps?cpids=83ceba89-bc18-1 lel-... 6!251201 t tvuKtnu t t�.tt ivt4aawLr.. , wE,4..r ut � higher interest rate loans. Please let me know if you have time today or early next week to stop by and go over some numbers/options. Thanks Dallas.l. Zulh i P Business l.eudin�­ AmeriChoire Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg. PA 17055 Phone(717)591-1266 Fax(717)697-3713 Email a !�li!ri °aticrt�ly�c.t r AnieriChoice Federal Credit Union and all its mort4age loan originators are registered with the Nationtt ide Mortgage Licensing S%stem.a free service for consumers to confinn that the mortgage crimpnny or morw e professional Stith % livin the\ ttish to conduct business is licensed. Licensinu' intbrniation can be obtained at tt 1':1v.i ,lw it{t m racecs4.org. Olt license number,is.543848 Notice: The infomtation contained in this message Wray be privileged.confidential.and protected fyotn disclosure. If the reader of this message is not the intended recipient.}ou are hereby notified that any dissemination. distribution.or cop)in.-of this communicalitti is strictl. prohibited. If;ou have received this communication in error.please notify us intinediately ht reps;iog to this message.and then delete it from your computer. All e-mail sent to this address rt ill be received i» AmeriChoice's ecrrpor:!te e-mail s\stein and is subject to archiving and review by someone other than the recipient. From: Gnana Chinniah (mailto:chinniahg@ahotmail.comj Sent: Tuesday, June 19, 2012 10:50 PM To: Dallas Zulil Subject: RE: Update n http:/;'sn 1"w.snt 132.mail.li\'e.coiii/iiiail1/l)'intMessages.ash x?cpids=H�Ccba89-bct*8-11 e 1-... 6,1L 5 rl-V 12 Dear Dallas, Thank you very much for the update and your help. I will drop-off the completed application at your office tomorrow or fax it over. I look forward to establish a long-lasting business relationship with Americhoice as my primary banking institution. Please let me know if you need any additional information or have questions. Regards, Gnana Chinnlah Subject: RE: Update Date:Tue, 19 Jun 2012 16:50:03 -6400 From: dzulli@americhoice.org To: chinniahg@hotmail.com Gnana, The numbers look pretty good on the properties and the proposed consolidation. Can you please complete, sign and return the attached application and I'll get things moving forward with our underwriter. I'll also get estimates for appraisals in the interim. Thanks, Dallas J. Lulli 'vl'Business Le[nclin!_ AmeriChoice Federal Credit Union 2175 Bumble See Hollow Road hiechanicsburg, PA 17055 Phone(717)591-1266 Fax(717)697-3713 { http://sn 122w.snt 122anail.live.coin/mail/Print V Tessa acs.aspx?epids-83ecba89-beIS-1le] 6.-25/2012 nuituati r teat tvi�y5kt t' Page 5 Ot'5 AmeriChoice Federal Ovdit un ion and::I I its niongage loan ori>inators are registered tic irh the Natiesn%i ide M orwave I_icenkin_',SJ steal.a:tr.f scr1 ice:Qr consumers to Confirm that the Inon-,3�e COtllp8n1 or ISIt)f"(ai3y,!t professional with tthoin they wish to conduct business is licensed. licensing intonnation can be obtained at air cca�<,:rtt'rarcr�a.,.i�;. Nit licen,c number is:543848 Notice: hhe information contained in this niesag�e may be privileged.confidential.and protected from disclmure, W ilie reader of this messagr is not the intended recipient,gnu are heicbt notified that any dissemination. distribution.or cop)ing ofthis communication is strieth prohiNted. if you hake receiked this communication in error.please notif} ns ihmiieditirely b} reply in=_to this messa=e.and then delete it troin lour computer. All e-mail sc^rit to tltis ttticress will be receiv M AmeriChoice's corporate e-mail syste;ni and is.subject to archiving and rcc it it l,. someone other than the Teribent. From: Gnana Chinniah (maiito:chinniahg @hotmail.com) Sent:Tuesday,June 19, 2012 1:36 PM To: Dallas Zuili Subject: Update sorry 7 mistyped your email address! From: chinniahg @hotmall.com To: ddzulli @americhoice.org Subject: Update Date:Tue, 19 Jun 2012 12:28:34 -0400 Dear Dallas, Please provide some update as to the status or if you need any additional information. Thanks, Gnana C:hinniah http:/!sn122w.snt122.mail.live.com/mail/PritYtMessages-aspx?cpids-83ecba89-bef8-t lel-... 6/25/2012 EXHIBIT 4 +avu++u++ • ++1.,+.+y alrJJCat:,.. r lgc l U1 / RE: Update Gnana Chinnish(chinniahg@hotmail corn) Thu 6/28/12 10:51 PM dzufli@)arnerichoice.org Dear Dalls, I apologize for the delay in my response as I was extremely busy with my work at Gannett during the day,and at properties this evening. Anyway,I will try to get the updated information tomorrow. I strongly believe that your underwriters would have already given you their blessings and you will get the same from the loan committee as well. Please keep me posted as soon as you get the good word so I can enjoy this weekend. Thanks for all your help. Regards, Gnana Subject:RE:Update Date:Thu,28 Jun 2012 08:45:54 -0400 From:dzulii @americhoice.org To:chinniahg@hotmail.com Gnana, The personal financial statement on Metro Bank's form is dated 6/912011. 1 hadn't noticed the"2011" part. Can you please update the statement using our form(attached)? Also,I've attached a new application since the loan amount has increased substantially. Thanks, Dallas J.Zulli VP Business Lending AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg. PA 17055 Phone (717)591-1266 Fax(717)697-3713 http://sn]22w.snt 122.mai l.live.com/mail/PrintMessages.aspx?cpids=a9fc3969-66da-4eb8-b... 7/8!2013 2�- Fina-XAL CREDIT UNION TO PROCESS MIS APPLi(A t 1(NV,ALL REQUESTED INFORMATION MUST BE PROVIDED x New Request Renewal Modification } MEMBER BUSINESS CREDIT APPLICATION Company Legal Name:' x&na Chinniah TetepllmnIi Number:7177326373 CoMpany Address:506 Erford Road ; Cite:Camp Hill State:PA ; Zip:17011 Company Mailing Address: - City: State:� I Zip: Are Facilities Owned or Leased: T—.M anthty Payment: 5 Years in Business: Tax ID Number: - T of Business(NA1CS): ._.. I Gross Annual Sales: $240,000 Business X Proprietor PaivtershIp S- I C-Corporation Limited Liability Corp/Comp. Cortitmion ( How much would you l e to barrow and what are the requested repayment terms?411 400,000 enm:20 WE 1 How are using these fiatids7:Credit Consolidation value?.15 Salad lavostmerWTUmal Properfm w Name Title Pert est a of Ownership Gnana Chinniah and Suximthinl.Chinniah Owners i 006A 1 Lender Type of Loan I Current Balance Monthly Payment Secured by P lease see attached schedule of Real p 3 wv _ S I Estate owned by the C'lunniahs S S S S t $ _ Totals: 1 yS S "Any unsettled lawsuits,judgments or disputes?: I IXIYes I No I f yes,what and why:Plaintiff's in a,Civil Rights lawsuit that is very likely to settle or get a jury verdict favorably to the borrowers Bankruptcy over filed by business Yes JXJNo I I If yes,when?: Any autsttatdiltg tax obl' tms7: - Yes ` X No if yes,why?: Ser ee g Yes No 11f rs�MNRIne of Provider: Checltin Account I Balance: $10,000 i savings Account ; Balance: S Cash Management Other This Credit Union nuy cheek tn4ii ad trade references in reviewing this application,and disclose inrormation about its credit experience with applicant,as authorized by law. This Credit Union may also ohm*du personal credit history of'the principal owner(s)arwllor key iadividual(s). In addition to the information m*wsted on this application,tins Credit Unloa may subsequently request additional information Iran the applicent. Applicant aathorim s The Credit Ualao to disclose this information ennuiaed Ica this appaceWa,any eradi report and petsoai flaaaebrl tahnnalloo with the Credit Union's SeMeer solely ror the purposes of andtrwritlng Ibis lama. As Cosillit Was,IN ablols a boolaw Credit R~Womb As an authorized agent of the applicant company,I have slated that everything in the application and information submitted along with the appli ti is true. j(w that this Credit Union may provide information about me(us)or my(our)account to others. Giving Chinniah cr y Authorized Signature(Must be an Officer of Company) Printed Name Title bate La nn yr� Suganthini Chinniah 0'1/ e-1 J a o l 2- Authorized Signature Signature(Must be an Officer of Company) Printed Name Title Date e PERSONAL FINANCL#L STATEMENT 2 11 . 1 121 1. Total Assets should equal Taal Liabilities+Net Worth Date of Stet It 2. -ftmass,41066 wmaditsect by lac` an`V In dte Jointly JO 07,104 +Rts1.2- Cash (Schedule l) Sjq ovO Real Estate Mortgages)(Schedule $/,(,.;) t Investments- $ Installment Loans(Schedule 7) S Marketable Stocks&Bonds Schedule 2)- �.___._..._ _ Accounts&Notes Receivable S Credit Cards $ _.._...........-- Real Estate Owned(Schedule 3) Federal Intone Tax S Auto Y;`;ie,lj Make $ Other Liabilities Auto Y Make S Total Liabilities _..---_...._...._...-.*-�. Cash Value Life insurance CSVLI(Sch.4) S Not Worth S N Retirement/Profit Sharing Accounts(Sch S) S (Total Assets Minus Total Liabilities) Business Ventures(Schedule 6) ��j, Other Assets S 't • ' ` NOW ASM S I TOW Littbll"w+Net Worth is SALARY OCCUPATION OR of BUSINESS t S 1S'rMrn t.may .. 2 S 2 _ Bonuses&Commissions S Em to r How Long Em le ed Dividends&Interest S Rents&Royalties S 2 2 Otter(Itemize) S Position Held Total Auusal I2catrre $3;z ALIMONY-CHILD SUPPORT: Inclusion of alimony,separate 2 maintenance or child support as income is voluntary and need not be Number if you do not wish to have it considered. If you choose to include mbCr of ndentS suds payments,please desctibe if by the court and case number,the amount I and the none and address of the person obligated to pay that amount to 2 you. if you are responsible for paying alinony.separate nmintmance or child support Phan give particulars of the obligation alone with your Other Endorser or Co-maker on Notes? Brief Description: Information -Yes Defendant In Any Legal Action? 1j, X" Yes No 2. Yes No_ �`•'�'� �'�.•I` p""''� Bankruptcy Ever Filed? i. Yes No 1 2. Yes No] '�r,w•s , Schedule 1 Name of Financial Type of Owner JO If Pledged,To Whom? Balance Institution Account Cash, J14 P.: 11 t `Checking, ! Savings, CD's,MM'S t Schedule 2 Description Registered in #of Share or Par Total Market Value Where Pledged? Name Of Invaatrrtantu- $ Stocks& $ Bonds $ Scbeduk 3 Description and Titled To Market Value Mortgage Lender Balance Mo.Pymt Location I I Real $ Estate S _ Owned $ Schedule 4 Name of insurance Policy Beneficiary/Relationship Amount Loans CSVLI Company Owner Life Insurance Carried Schedule 5 %Vested Company Account Manner of Payout Distribution Date Amount Name # Vested interest in _ Retirement/ Profit Sharing Accts Schedule b Business Names in Position or Line of Years in Current IV*of Business Present which you are a Title Business Business Market Ownership Net Value principal or partner Value Worth Your% Business Ventures Schedule 7 Lender JO Origination Balance Monthly Final Payment Collateral Date Payment Date Loans owed $ $ to CU's, $ $ Banks,and S $ others $ $ I(we)confirm that this financial statement is given to you by me for the purpose of obtaining credit from time to time;that I have read the same and that it is true and complete. I agree that if,in your sole opinion,this financial statement is found to be incorrect any one or more or all of my obligations to you at you sole discretion may be matured by you without demand upon formal notice to me. I(we)authorize this Credit Union toy disclose the information contained in this application,any credit report and personal financial hnrormation with this Cr WR Union's Servieer,solely for the purposes of underwriting and servicing this loan. Applicant authorizes the Credit Union t¢obtain a Personal and/or Businen Credit Report through its%rvker. Signature ca '! ._ --- Date 7 �/ ►L. Signature t' ,,, _ , ,�, � a Date 0-11 zt�t,Z y r PINAL FINANCIAL AT&1MliENT 2 `vlrt +r+J Nry 2 1'SI " '' Z�-. 2 1 7� P4 17o jr l 17 732 2-:Z 1 2 1 121 1. Total Assay should epal ToW Liabilities+Not Worth Date of Six t: O 710 Cash (Schedule l) S!q c06 heal Ewe Mort sge(s){Schedule 31 S c hivestmo ts- S Installment Loans(Schedule 7) S Marketable Stocks die Bands LSchedule 2 Accounts dt Now Receivable S Credit Cards S Real Eatase Owned Schedule 3) Fedt►rai Income Tax Auto Year;M1 Mtlke S 2jand Other Liabilities ___.... Auto I Y Make S Tow Listbliitlaa Cash Value Life biotin tee CSVLI Sch.4) S Net WorNt Retirement/Profit Sharing Accounts(Sch 5) S 4aeec (Total Assets Minus Total Liabilities) + Business Vm tu=(Schedule 6) $ s ,k'�f''Ok a`y{ Outer Assets is —� Taw Is T&M Imo•+Net Worth S SALARY OCCUPATION BUMPM I 1 11 -65 ear. 2 S 2 J T Bonuses dt Commissions S Employer How Long Employed Dividends Ill Interest S 1 icon,t rt � 1 r_11-4-- Rents dt Royalties S 2 pdw(n @Mb*) S Position Held Tow Amts!Lecom S q2 CM20 1 A,1,IMf71hlY-Off1,D SUPPORT: lncludon of alimony,apuise 2 maintenance or child support as income is vohmtwy and need not be Number of Dependents reveled if you do not wish to have it considered. If you choose to Include 1 such payments,phase describe if by the w ase wort and c number,the aamunt and the rame and address of the person obligated to Pay that amount to 2 You. if you are tsaponsibie for payhtg alimony,separate maintaaance or child support, please give Pwdcuhhrs of the obligwon song with your Other FAdersar or Co-maker on Notes? Brief Description: Information I. Yes No Z. Yes No A- t^liwQKF.: it Defencilattt in Any Legal Action? i. Yes No 2. Yes No dw+ Bani uptcy Ever Filed? 1. Yes No Schedule 1 Nahne of Financial Type of Owner JO If Pledged,To Whom? Balance Institutio Account Cash, M G 4" Checking, r Savings, CD's,MM's Schedule 2 Description Registered in #of Sham or Par Total Market Value Where Pledged? Name Of Invesuvionu- $ Stocks& $ Bonds $ `;j• ..y+; �1•-.i'..t�{ i..yF„a`.::t� `.i�2i air �fi!ik►" ':�:. {7w: ;yr•e.►�.i' sue►;; • ''r ir. .ew:t.•;;:�,+, . Schedule 3 Description and Titled To Market Value Mortgage Lender Balance Mo.Pyint Location Real $ Estate $ Owned $ • .Y. , ��-'•.. ryi••ri 1.• �,.y,.w � .1,.�f�,;Ir:+iy.��.:�.�� v1'5.�,.,=,.i,(•'..i;i i?+�4,1Y '`,;i i ' `.i., ' Schedule 4 Name ofhowance Policy Beneficiary/Relationship Amount Loans CSVLI Company Owner Life Insurance Carried .1`yw••�,-' ; .Y�+.,yG ii. '.,'.�P,'N•Y�+.. 4.-J✓Y:.: , s• Schedule 5 %Vested Company Account Manner of Payout Distribution Date I Amount Name # Vested __... interest in Retirement/ Profit _ Sharing Accts .7.,.3• o .'th. .f. :t if '?.� -`+'t=..y►.-k,�!:�,- "• /'- ,�., Schedule 6 Business Names in Position or" Line of Years in Current %of Business Present which you are a Title Business Business Market Ownership Net Value princiMl I or partner Value Worth Your% Business Ventures Schedule 7 Lender JO Origination Balance Monthly IFinal Payment Collateral Date Payment Date Loans owed S $ to CUs, $ $ Banks,and S $ others is $ I(we)confirm that this financial statement is given to you by me for the purpose of obtaining credit from time to time;that I have read the same and that it is true and complete. I agree that if,in your sole minion,this financial statement is found to be incorrect any one or more or all of my obligations to you at your sole discretion may be matured by you without demand upon formal notice to me. I(we)authorize this Credit Union to disclose the information contained In this application,any credit report and personal financial Information with this Credit Ualoa's Servleaer,solely for the purposes of underwriting and servicing this loan. Applicant suthoriaes the Credit Union to obtain s Personal and/or Bwiaess Credit Report through tts Servicer. �.-•-- Signattue A— Date 0.1 .202 r r EXHIBIT 5 t ivtututi i itlft:virr»n�c t"d}.?C 1 U1 L RE: Commitment Letter and Appraisal/Title Work Dallas Zulll (dzuAi(90a;nerichoice.org) Fri 7106112 4:15 PM Gnana Chinniah (clrir.nidhg@hatrnail.corn) Gnana. I should be able to deliver you a cormnitment on Monday. Can you please send me the updated application and personal statement as we discussed? Fax or e-mail is fine. Thanks, Dallas J. Zulli VP Business Lending AmeriChoice Federal Credit Union 2175 Bumble See Hollow Road Mechanicsburg, PA 17055 Phone(717)591-1266 Fax(717)697-3713 Email ira ''ii. mctichuicc.mr AmeriChoice Federal Credit Union and all its mortgage Inan originators are registered with the Natiomride Mortgage Licensing S ystem.a free service for-consumers to confine that the mortgage company or mortgage professional%vith whom they wish to conduct business is licensed, Licensing information can be ohiained at t�u��,nml<ytmnsumerlc,ggss org. My license number is: 543848 Notice: The inritnnation contained in this message may be privileged.confidential.and protected from disclosure. If the reader of'this message is not the intended recipient. ,ou are hereby notified that anv dissemination. http://sn t 22w.snt l 22.mail.li ve.con/tnai l/PriniMessages.aspx?cpid s=52adeb96-c7a7-1 1 el-8... 7/8/2012 EXHIBIT 6 eriChoice - FEDERAL CREDIT UNION Building Relationships For Life July 10,2012 Gnanachandra M.and Suganthini Chinniah 506 Erford Road Camp Hill, Pa. 17011 Dear Gnana and Suganthini: AmeriChoice Federal Credit Union(the"Lender")is pleased to advise you that, subject to the terms and conditions hereinafter set forth;it hereby approves your request for the proposed loan described below. The loan is subject to(1)Acceptance of this proposal;(2)Compliance with all the provisions hereof;(3)The statutory and other requirements by which AmeriChoice Federal Credit Union is governed;and,(4)Borrower(s)'s compliance with all the terms and conditions stated in this letter: 1. Borrower(s) Gnanachandra M.and Suganthini Chinniah 2. Amount of Loan $1,400,000.00 3. Purpose of Loan Refinance existing debt 4. Term 120 month term loan with balloon;Payments to be amortized over 240 months 5. Monthly Payment The monthly payment will be approximately$9,494.23;Payments include principal and interest due and payable commencing one month after date of settlement,unless otherwise stated in the Loan Documents 6. Late Payment Fee : 5%of total payment after 15 days past due,minimum of 525.00 7. Interest Rate The interest rate will be fixed at 5.25%for 60 months thereinafter converting to a variable interest rate;the variable interest rate will adjust monthly to changes in the Wall Street Journal Prime Rate; The variable rate will be set equal to the highest base rate plus l% on corporate loans posted by at least 75%of the nation's thirty largest banks that The Wall Street Journal publishes as the Prime Rate with an interest rate floor of 4.50% Main Office:2175 Bumbte Bee Hollow Road •Mechanicsburg, PA 17055 •Phone:(717)697-3474•Fax:(717)697-3713 Wabeito:www arnerichoice era _. dc• ....... = = It HUE it R PiWt UXINi 8. Collateral : Lender will hold a first lien security interest in the land,buildings, and fixtures located at: 506 Erford Road,Camp Hill,PA 4600-4608 Linden Avenue,Mechanicsburg,PA 576-580 W.Loather Street,Carlisle,PA 411 Water Street,New Cumberland,PA 1017 Walnut Street,Lemoyne,PA 120 N. Second Street,Enola,PA 493 State Street,Enola,PA 306 Third Street,Enola,PA 439(1439)N.Second Street,Enola,PA 404 State Street,Enola,PA 198 Creekside Drive,Enola,PA 36 Creekside Drive,Enola,PA 406 Fairview Avenue,Enola,PA 502 State Street,Enola,PA 224-226 Lincoln Street,Marysville,PA (collectively,the"Property")including future improvements erected thereon and placed therein as collateral for this Loan;An assignment of rents and leases wilt be recorded for the Property 9. Appraisal : Complete appraisals of the Property,performed by a certified appraiser approved by Lender,will be required for this Loan;The appraised value must equal or exceed$1,750,000,otherwise this Commitment may become null and void at the Lender's sole discretion;If the appraised value of the Property is lower than S 1,750,000 then Lender may lower the loan amount to equal 801% of the appraised value at its sole discretion;The loan amount will not exceed 80%of the appraised value of the Property;The appraisals must be satisfactory to Lender and Property must in a condition acceptable to Lender;If reappraisal of the Property should be required by Lender in the future Borrower agrees to pay for the appraisal;Borrower is responsible for the cost of the appraisals,$6,300; Borrower may pay the appraisal cost to Lender in installments of 52,100; The first installment must be paid to Lender at acceptance of this Commitment; The second installment must be paid to Lender when the appraiser's physical inspection of the Property is complete; The final installment must be paid to Lender at settlement or delivery of appraisals to Borrower(s) 10. Prepayment : The Loan may be prepaid in any amount at any time without penalty on the Ioan chinniah--.tuiy 2m 2 f I l.Loan Documents : All documents pertaining to the closing of the loan including,but not limited to,the Promissory Note,Mortgagc(s),Business Loan Agreement,Assignment of Rents&Leases and all other contracts/documents for closing must be prepared and executed satisfactorily to the Lender and their legal counsel's standards;All obligations shall be secured by cross default provisions and personal guarantees;Borrowers)agrees to sign an Assignment of Rents and Leases Agreement for the Property 12.Ownership Change : In the event the Borrower(s)shall by sale or by operation of law, cause or allow the title or ownership of the Property herein required to be pledged as collateral for the loan become vested in any other entity or persons other than Borrower(s),including but not limited to,by means of sale,trade,acquisition or merger;the entire balance due hereunder shall,without demand,at the option of the Lender becomes due and payable 13.Financial Information : Borrower(s)shall furnish annually to Lender within 94 days of the applicable filing date personal tax returns;Borrower(s)shall famish a personal financial statement and rent/roll forms to Lender annually upon presentation of the tax returns;At the request of the Lender,the Borrower(s)agree to supply the Lender with any additional personal or collateral information(i,e,copies of teases, etc.) 14.Adverse Change : The Borrower(s)will provide the Lender with immediate notice of any adverse change in Borrower(s)'s financial condition and the Lender shall have the option,in its sole discretion,to cancel its commitment because of such adverse change 15, Warranties The Borrower(s)warrants in Borrower(s)'s acceptance of this commitment that all financial information that Borrower(s)have submitted to the Lender is true and accurate at its time of submission and that there has been no material change;If any agreement,warranty,or representation is not true at the time it was made or at any time funding of the loan,the Lender may in its sole discretion cancel this Commitment Letter,either in whole or as to the remaining undisbursed funds 16. Flood Insurance : Prior to closing,the Lender will obtain a flood certification for the Property;Any fee incurred will be charged to the Borrower(s);if the Property is determined to be in a flood zone the Borrower(s) agree to purchase flood insurance to cover the Property and collateral secured by the Loan Chinninh-July 2012 3 ales;Loan setil meat must occll: within 60 c!ay<of the datC herein -1thcn\is: this Commanneni becomes null and void c ternns and oundit'vns of this Lcucr of C oruniunent shall sur\i\a the imlemeni of tilc loa- witil raid in full and snail he a part o the Promisson-Dote and Husincss Loan.\glrement c.cccuted in con'lunctiou here%vaih as though set torth in detai therein. A n% moditicalinns of this 0111111itment shall be in lvrhing and agreed to by all varies. i>riv default in Elie ienris and conditict:s ofthis Commitment l...ctter shall be as hetween the parties hereto considered a default in the terms of tho Pre+nlissor% Nme. To the knoA-Ic igc of the Borro\\•et•(s).no action.shit.or proceeding t5 POILlillP ter 1111•Caicned"'herein wi L111faVorable digposition could materiatlp ate\erse't•ai'r'ed the Limuler or the Propeii\, assets.opera ions. or financial condition of the f3l+rrcl\+.crt s 7. We at H in,ri Clio iee federal Credir union ire pleased to extend this conlinament to Gnanachandra M. and Sueanthim Chinniah. We look Ior\\ard to\corking\+ith \uu in the tut:lre. cincerelti. i Dallas.l. I.utli VP Business I.c:nein"; ti(f iJt C l3\II"I_\�Il�"�T The undersirnerl herehv acknowledges receipt ofthe fill-c-ling Commitment this da) 11f_ .;_ _ 2012.and does hereby accept all of the terms, conditions tint!Time 'ilnitations set fill-th in the Conimititnent b�,the exemion ol'sarne. The proceeds ofthe loan(s). if any,,made under this letter\till be used exclusively for business purposes. F3orr�ne*{s): — Gn:machandra Nf. Chinniah, Indi\iduall\ Suenmhini C'hinuniah. Indi,,,iduuily �eon.��rw.o+n.a.wa +�wat�er�r ,w.rn.,r.w.aM GHANA CHINraAH 6298 506 ERFORD RD, 717.732.6273 CAMP HILL,PA 17011 Ell �.. K.rti � ♦ '• rf f METRO BANK i:0 3 L 10 18461: S b 3 11,0 24 4 tt1 6 298 EXHIBIT 7 4 ...... ...._.... ..b. rdre A Ut 1 RE: Appraisals SIC Title work for Ghlnnlaws loan Gnana Chinnish(chinniahg @hotmail.com) Wed 8/08/12 12:22 PM dzulli @americhoice.org(dzulli @americhoice.org),lawoffice@reedpalaw.com (lawoffice@ reedpa law.com) Dear Dallas. Thank you for your response and settlement time frame. Based on my understanding of the availability of Atty. Reed,I would prefer August 27th or 28th as I have a pretty tight schedule that week. Per request from Atty. Reed,I am making copies of all the mortgage bills,credit card statements,and loan balances to Mr.Harris etc so I can help both of you in getting the pay-off quotes in a timely fashion. If you need my authorization in writing to get these,please let me know. I truly appreciate your understanding of my personal situation,and strongly believe that I will get the auto loan paid off as well as a line of credit to maintain the collaterals of AmeriChoice. My wife will drop off the check for$2100 at one of your branch offices most likely today. Please let me know if you need any additional information. Regards, Gnana Subject:RE:Appraisals 8t Title work for Chinniah's loan Date:Wed,8 Aug 2012 11:53:22-0400 From:dzulli @americhoice.org To:chinniahg @hotmaii.com Gnana, She can either mail it or drop it off at any one of our branches(addressed to my attention). Let's see what the numbers are on the appraisals and we can go from there regarding a line of credit to improvement and the auto loan. We are likely looking at settlement the week of August 27u'. Is there a day of the week or time of day that works best for you? Please let me know. Thanks, Dallas,L Zulli VP Business Lending AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road http:/Isnl22w.sntl22.mail.live.com/maii/PrintMessages.aspx?cpids-4a3OO7aO-el75-1 tel-a... 8/8/'2012 ........ 11fille I of RE; Apprahiisis & Title work for Chinniah's Wan Atty Gregory Reed lie 8/07/1.2 2:40 PM, Clnalr,F Chinriah'(chinr,6hq@hotrn-iil,corn) reccived aimc--t i 'W -)f 111t.*it!e St?:,,Cl,ieS,The cther,� vviF be cctrnpletsd scun, wdlriced I g the numcrn)s Pi':-Cff ct-JefI 1Pn L� tlle be o--il cf the ofi.r(- until -:11; vpflable any d-.;,,,str7itmg 2(012 v liv, ll:e t?,,(LeOdOrt(A the Olornint,of 'tilg 0, le .19 12 arid",the morn From:Gnana Chinniah Sent:Tuesday,August 07, 2012 11:58 AM TO: Subject:Appraisals&Title work for Chinniah's loan Gendernen; Thank you very much for keeping me informed about the progress of the title work and appraisaWfinal underwriting. Dallas, please let me know if you prefer my wife to hand deliver the$2100 check towards the appraisal cost or it is okay to mail it to you. I am very confident that the appraisal would easily meet your target value of$1.8M so that the original loan amount of$1.4M can be finalized. I would like to have some liquidity In the form of Line of Credit so I can use some of this money to do required timely maintenance such as roof replacement of 2 or 3 properties which the appraisers may have already annotated. Say, if the aggregate total of the appraised value of all 15 properties is$2.OM as opposed to my estimate of$2.21M,the excess equity up to 80%Loan to Value can be as much as $200K. I would like to also pay off my Auto loan to improve my cash flow by as much as another $535/month. Please keep me posted as to what information you need from me so we can close this loan in a timely fashion. As I have a very eventful weeks ahead at my regular work place(Gannet Fleming)and my rental property related matters, I would like to know a settlement time so I can plan my calendar. Therefore, please pick a mutually agreeable time and place for settlement and let me know so I can let you know If I have any conflicts. Thanks, http://,.qn 122w.sntl 22.mail.liNe.com/mail/PrintMessages.aspx?cpids--5afdb5bl-eObf-I le]-a9... 8n!2012 i Y ,.......... ..........��ue� Page I of 6 RE: Appralsals & Tale work for ClUnnlah's loan Gnana Chinniah(chinniahg @hotmail.com) Wed 8/15/12 US PM dzulli@americhoice.org(dzulli @americhoice.org);lawoffice @reedpalaw,com (lawoffice@ reedpalaw.com) Dallas, I have already requested for all of the pay-off statements for the mortgages and credit lines/cards involved in this loan. They would be mailed out to my home address. I will make copies of the same and forward them to you and Atty,heed's office so that we can start putting the final numbers together for the settlement on or before 31 August 2012 as the pay-off numbers are good till the end of the month. Based on your representation,and Atty.Reed's estimate of time frame provided at the beginning of the loan initiation and our engagement,I still believe that we should be able to close this loan before the end of August. Therefore,please follow up with the appraisers and request them to expedite the completion of those reports with the goal of settling this loan on or before August 30 as I don't want to wait till the last day of the month, i strongly believe Atty.Reed will do everything in his control to complete the title work as soon as he returned back to his office on Monday,August 20, 2012. Please keep me posted as to the developments to make sure that everyone involved is doing their role to close this loan in a timely fashion, Thanks, Gnana Subject:RE:Appraisals&Title work for Chinniah's loan Date:Wed,15 Aug 2012 16:18:53-0400 From:dzulli @americhoice.org To:chinniahg @hotmail.com Gnana, We have not received the appraisals yet,but when we do I'll let you know. I did speak with Attorney Reed's office and they are not prepared to set a settlement date as they do not have the title work completed. I asked them to contact me once they were able to set a date. Thanks Dallas J. Zulli VP Business Lending http://sn]22w.snt l 22.mail.live.com/mail/PrintMessa ges.aspx?coids=4109b332-e741.1let-... 8/15/2012 EXHIBITS D►ETHLEr'S-PYKOSH LAW GROUP, LLC Derrell C.Dethlefs" Of Cow tinsel Micbsel J.Pykosh* 2132 Market Street John R.Logan•* Bryan W.Shook Camp Hill,PA 17011 Paul D.Daggs Melanie L.Erb Phone: (717)975-9446 L101 tetr Heather NI.Orisko Toll Free:(800)287. 1202 Sherry L.Deckman• Charles J.Hartwell Fax: (717)975-2309 Crystal L.Mahoney Richard D.Hollingworth,Jr. E-mail: ddethlefs&ol.com Susan E.Disbrow www,dpiglaw.com Christopher J.Damon 'I seen red PA ride Agentp •'Admrrted 10 rhs NJ Bar August 30,2012 Gregory R.Reed,Esquire Law Offices of Gregory R.Reed 3120 Parkview Lane Harrisburg,PA 17111 RE: Your Cent: Gnanachandra and Suganthinl Chlnniah My Client: AmeriChoice Federal Credit Union Matter: Business Loan Application Dear Attorney Reed: This letter is a follow up to our telephone conversation of August 28,2012. Earlier this summer,your clients sought a business loan for the purpose of refinancing existing business debt. In connection with that business loan request, your client provided my client with information regarding property values. A copy of the document that your client provided my client is attached hereto as Exhibit"A"to this letter. On July 10, 2012, my client issued a conditional commitment letter to your client. That letter stated, "The loan is subject to(1)acceptance of this proposal; (2)compliance with all provisions hereof; (3)the statutory and other requirements by which AmeriChoice Federal Credit Union is governed; and, (4) the borrowers compliance with all the terms and conditions stated in this letter." Paragraph 9 of the conditional commitment letter states that a condition of the loan was, "Complete appraisals of the Property, performed by a certified appraiser approved by Lender, will be required for this Loan; The appraised value must equal or exceed $1,750,000, otherwise this Commitment may become null and void at the Lender's sole discretion; If the appraised value of the Property is lower than $1,750,000 then Lender may lower the loan amount to equal 80% of the appraised value at its sole discretion;The loan amount will not exceed 80%of the appraised valued of the Property;The appraisals White Rose Business Center 100 Lincoln Way East,Ste.C I E.Market Street,Ste.201 A Debt Relief Agency Chambersburg,PA 17201 York,PA 17401 The Dethlefs-Pykosh Low Group, LLC— "Your Full Service Law Firm" must be satisfactory to Lender and Property Must in a condition acceptable to Lender," (Emphasis Added.) it is clear that the loan was conditioned upon the appraisals that must be satisfactory to the Lender and that the properties must be in a condition acceptable to the Lender. I am including herewith copies of the first ten (10)appraisals. To begin with, none of these properties appraised at values equal to the values stated by your client when making application for this business loan. in fact,a spreadsheet comparing the borrowers opinion of value with the appraised value on the first ten (10) properties demonstrates that there is a substantial difference of$233,000.00 in values. Many of these properties appraised at values significantly less than the borrower Indicated when he made application for this business loan. But more importantly and the key to the Credit Union's decision to not lend your client money Is that the appraisals reflect substantial problems with the conditions of the properties. This letter will highlight some of these condition deficiencies. On the property located at 406 Fairview Avenue, the appraiser noted "evidence of deferred maintenance and obsolescence". (Emphasis Added.) On the property located at 493 State Street,the appraiser stated,"The subject property is considered to be in average to fair condition........Unit 2 is considered to be In fair condition;the bathroom flooring and Interior paint shoal extensive deferred maintenance. Water Zainj are present on the cellins the (See- subject photo's). Unit#1's tenant indicated that the unit has roaches. Visible evidence was present." (Emphasis Added.) On the property located at 1120 Second Street,the appraiser noted, "?he subject property is considered to be In average-fair condition......Unit 2 is considered to be in fair condition, the half bathroom (no value given), flooring and Interior paint show extensive deferred maintenance. See Photographic Addenda." (Emphasis Added.) On the property located at 1439 Second Street,the appraiser noted,"Evidence of deferred maintenance and obsolescence with age in that repairs are needed along with refinishing......Bathrooms are considered to be In Fair to Average condition. See subject photos for deficiencies and areas in need of cleaning and repair." (Emphasis Added.) For the property located at 36 Creekside Drive,the appraiser noted,'?he subject is considered to be in Fair Condition with many items needing refinishing or overhauling (flooring, cabinets, bathrooms and Interior paint),deferred air n ce obvious shortening the life expectancy and increasing the effect- tive age also with a lack of exterior yard maintenance decreasing market appeal." (Emphasis Added.) It is clear from a review of these appraisals that the common theme running through all these appraisals is that these properties have significant condition deficiencies in the area of deferred maintenance. The appraisals are attached to this letter as Exhibit"B'for your reference. The AmeriChoice Federal Credit Union will be issuing a formal declination of credit to your client based on the expressed contingency in Paragraph 9 that the appraisals must be satisfactory to the Lender and the properties must be In condition acceptable to Lender. Your client has demanded a refund of the cost of the appraisals. Paragraph 20 of the conditional commitment letter states that the Borrower is responsible for the costs of the appraisal fees. And, finally, your client has threatened my client with litigation and has sent me an email asking if I would accept service. There is no question that the conditional commitment that your client agreed to, provided that the properties must be In a condition acceptable to the Lender. There Is also no question that the appraisals highlight significant deficiencies in the conditions of the properties. Should your client pursue litigation that is baseless and without any merit,then my client will certainly have a claim for the reimbursement of any attorney fees Incurred in defending meritless claims. Your client's threat of a lawsuit in an attempt to force the Lender to accept deficient collateral is outrageous and Will be vigorously defended, if you wish to discuss these issues in further detail,I can always be contacted on my cell phone at(717) 443-2447 or at my office at(717)975-9446. Very tru ""rs, Darre . ethlefs DCD:sId Enclosures cc: Dallas Zulli EXHIBIT 9 r 2012 Sta ment of Real Estate Taxes BControl ill Dat . X7/0 X12 PAYABLE rlaseasad Land Improvement Mineral Total .0 Values 20.900 67,600 0 s5 '00 DEBBIE LUPOLD.TREASURER EAST PENNSBORO AREA S.D. I Discount Face Penalty- 98 S.ENOLA DRIVE,ROOM 101 Aacea .01052540 -01052S40 2• 10 ENOLA PA 17025.2704 gCHOOL A/E 914.93 533.60 11026.96 DISC ASSESS.NO.45000142 TAX AMOUNT DUE----> $914.93 $933.60 $1,026.96 MAP NO: 45-16-1050.062. 406 FAIRVIEW AVENUE ACRES 040 DEED 0027510$943 If Paid on or Bafore 6/31/2012 10/31/2012 12/31/3012 RETURN ONE COPY WRN PAYwoor-'IF TAXES ARE ESCROWED FORWARD LAND LESS THAN 1 ACRE TO MORTGAGE CO'--'$1.00 FEE FOR EACN ADD-L COPY OR RECEIPT RESIDENTIAL 1 FAMILY -IF NOT PD BY 12!71117 THIS SILL WILL BE RETURNED TO TAX CLM BUREAU FOR COLLECTION a FILING OF A LEN AGNST YOUR PROPERTY TAX CHINNIAH GNANACHANDRA M -AVER 506 ERFOAD RD CAMP HILL PA 1701 1-1 122 aFw CLOOSED FRIDAYS OOPM S&HOLIDAYS PHONE(717)901.9392 it paying in inslallments use the coupons 4low to submit payments.it paying in full use ONLY the 1ST coupon below to submit payment. _ TAX PAYER COPY Bill No:111121 2012 all ofReel Estate Taxes BHDateo.�7/ 1J�9 pArAelf Auasead Land Improveeant mineral total Tp Values 31,4001 $7,000 0 216,400 DEBBIE LUPOLD,TREASURER EAST PENNBBORO AREA S.D. Disownt Face Panel 98 S.ENOLA DRIVE,ROOM 101 pates .02052540 .01052540 3 10 ENOLA PA 17025.2704 SCHOOL R E 1 221.29 1 216.21 $,370.53 DISC ASSESS.NO.45000107 MAP NO: 45.161050.027. TAX AMOUNT DUE---> $1,221.29 $1,246.21 $1,370.63 493 STATE STREET or ACRES 350 DEED 0026W 03185 I! paid On orAft.ore 7/oi/3ui2 l0/01/2oi3 12/31/so�� RETURN ONE COPY WITH PAYN EW-'IF TAXES ARE ESCROWED FORWARD LAND LESS THAN 1 ACRE TO MORTGAGE CO. $1.00 FEE FOR EACH ADWL COPY OR RICO" MIXED RESIDENTIALICOMMERCIAL IF NOT PD BY 12/31112 THIS OLL WILL BE RE UW=TOTAX CLM BUREAU FOR COLLECTION A FILING OF A LMN AONST YOUR PROPERTY IAX CHINNIAH GHANACHANDRA M PAYER 506 ERFOAD RD CAMP HILL PA 17011-1122 artrcE MONDAY-THURSDAY 9:OOAM-4:OOPM w.wpa CLOSED FRIDAYS 6 HOLIDAYS PHONE(717)901-9392 if paying in installments use the coupons below to submit payments.it paying in full use ONLY the 1ST coupon below to submit payment. TAX PAYER i 2012 Stat men(of Real Estate Taxes Bill Date;NO:045.00l Date; 7/01/2012 No: 1119 Control -AYABLE Assessed Land improvement mineral Total r0 Values 17 600 04,600 0 102,200 DEBBIE ENOLA DRIVE,TREASURER EAST PSIMMSBORO AREA S.D. Discount FOOD Penalty 98 S.ENOLA DRIVE,ROOM 101 ENOLA PA 17025-2704 hates .01052540 .01052540 2% 10% SCHOOL A/E 1,050.19 1 075.70 11163.27 IESC ASSESS.NO•45000461 MAP NO: 45.17-1044.224. TAX AMOUNT DUE -> $1.054.19 $1,075.70 $1,161127 1120 SECOND STREET ACRES .090 DEED 00260x04326 if paid On or After 7/01/3013 9/01/2012 1 11/01/2012 I! pa d on or Before 6/21/2012 10/)1/2 13 l2 31 2012 PO LOT 45 RETURN ONE COPY WrM PAYMENT- 111s TAXES ARE ESCROWED FORWARD RESIDENTIAL 2 FAMILY TO MORTGAGE CO.—$1.00 FEE FOR EACH AWL COPY OR RECEIPT If NOT PD BY 1213102 THIS BILL WILL BE RETURNED TO TAX CLM 6UREAU FOR COLLECTION A FILING OF A LIEN AGNST YOUR PROPERTY AX CHINNIAH GNANACHANDRA M AYER 506 ERFOhQ RD CAMP HILL PA 17011-1122 "Cl MONDAY-THURSDAY 9:00AM-4.00PM 3uRs CLOSED FRIDAYS&HOLIDAYS PHONE(717)901.9392 2012 t r,.of Rea!Estate Taxes Bii Dat No:047�04C0012 PAYAME hseeeeed Land I I1110t0vee1int Mineral Total 7c Values 26.340 104.000 0 112.300 DEBBIE',UPOLD TREASURER EAST PENNSBORO AREA S D. DiseOUnt Face Penalty 9r3 S. A PA 1 02 5.27 ROOM 105 Rates .0105x540 01452540 2 s 10% ENOLA PA 17025 2704 8cNO0L x/2 21364-56 1,392.51 3,531.76 oesc ASSESS NO-45000284 MAP N0. 45-17-1044.061. TAX AMOUNT DUE....-> $1,364.E16 $1,392.51 !1,531,76 1439 SECOND STREET ACRES .230 DEED 00267100165 If Paid On or Attar 7/oi/2oix 9111/2112 11/01/2012 If Pai on or $store 9/3,/2 2 "/3 11,0,2 1 2/31/2011 RETURN ONE COPY WEtH PAYMENT"v TAXES ARE ESCROWED FORWARD LAND LESS THAN 1 ACRE TO MORTGAGE CO.•'•'i1 W FEE FOR EACN AWL COPY OR RECEIPT RESIDENTIAL 1 FAMILY IF NOT PD BY 12131112 TM BILL WILL SE RETURNED TO TAX CLM BUREAU FOR COLLECTION a FILING OF A LIEN AGNST YOUR PROPERTY AX pAYfR 5061 ERFOkD RDNA CAMP HILL PA 17011.1122 orncE MONDAY-THuAiSDAY 9:OOAM-4:OOPM w"s CLOSED FRIDAYS 3 HOLIDAYS PHONE(717)901.9392 TAX PAYER COPY 8E0 No: 1151 C�ontta!No:{ 9.001066 2012 01 Real Estates T� BIll Data' 7j0112012 'AYA6[E Assessed tamed Zw=aVIAYI! IliRaral � µ Total c V es 33,700 9 60C ixf.a40 98 S.EE LUPOLD,TREASURER EAST POW90R0 AREA S.D. 01"0 mt Fees penalty I 95 S.ENOLA DRIVE.ROOM 141 - ---- ENOLA PA 17025-2704 Rates .010525401 .01052540 2♦ 11• SCHOOL R/A 1 „� 1;_aJ.3.7: 1 3Lfl.*}} 1.497.02 ,Esc ASSESS.NO-09004345 { MAP NO: 09.16-1051-042A TAX AMOUNT DUE $1,360.93 51,497.02 i 36 CREEKSIDE DRIVE ACRES .670 DEED 002SW 00092 If Paid On or After 1 7/01/2013 ifT 9/01/2012 11/01/2012 If Paid 0n or 8efare t a/3x/IOi3 t (0/11/301 12/31/201 SOUTH ENOLA -- RETURN ONE COPY WITH PAYM&M-F TAXES ARE EWAKW SD FORWARD LOT 1 PB 27 PG 63 TO UM42AGE CO.—*$1.00 FEE FOR EACH AWL COPY OR RECEIPT RESIDENTIAL 1 FAMILY 'IF Wr PO BY 12131112 THIS BILL WILL BE RETURNED TO TAX CLM BUREAU FOR COLLECTION i FILING OF A LIEN AGNST YOUR PROPERTY Ax CHiNNIAH ONANA M 'AYrn 506 ERFOkD RD CAMP HILL PA 17011-1122 urcE MONDAY-THURSDAY 9:00AM-4:OOPM quR, CLOSED FRIDAYS 6 HOLIDAYS PHONE(717)901.9392 It pitying in InstalblHtnts use#w crlupons below to submit payments.If paying In full use ONLY the 1ST coupon below to submit ps)LrMt. 2012 Sta#anant of Real Estate Taxes BilllD NO: 1117 e: 7,10112012 Control No:045-400073 �YAS.E Assessed lisnd IaprovYent Mineral Total Values 25.3001 04 Soo 01 10 900 DEBBIE LUPOLD,TREASURER 98 S.ENOLA DRIVE.ROOM 101 EAST PEtRfSiORO AREA S.D. 0ls�unt Fares Pseud ENOLA PA 170252704 Rates .91#32540 .01052540 2+E 10 s SCHOOL R/2 i 1,132.56 11155.69 1.271.x6 esc ASSESS.NO.45000177 MAP NO: 45.16-1050-090. TAX AMOUNT DUE---> $1,132.58 $1,155.69 $1,271.26 502 STATE STREET ACRES .170 DEED 2008211172 It Paid on Or At ter 7/01/2012 1 9/01/2012 12101/2012 If Paid On or Before 112012 1 30/31 2012 13 32 2012 LAND LESS THAN 1 ACRE RETURN ONE COPY WITH PAYMENT"W TAXES ARE ESCROWED FORWARD LANiDE SST 1 FAMILY TO MORTOAGE CO.""11116 FEE FOR EACH AWL COPY OR RECEIPT IF NOT PO BY 12)21112 THIS BILL WILL SE RETURNED TO TAX CLM BUREAU FOR COLLECTION 4 FILING OF A LIEN AGNIST YOUR PROPERTY ac CHINNIAH GNANACHANDRA M .YEN 506 ERFOhD RD CAMP HILL PA 17011-1122 FF,cE MONDAY-THURSDAY 9:00AM-4:00PM CLOSED FRIDAYS&HOLIDAYS PHONE(717)901.9392 ..__...__— ti.i—e..ankma nay.n►me It navina In hull uea nNl Y tha 1491'mmnnnn halmv to euhn oit nevment. TAXING AUTHORITY:WEST SHORE SCHOOL DISTRICT WEST SHONE 30HOOL DISTRICT TAX YEAR:2012.13 REAL ESTATE TAX NOTICE LEMOY E BOROUGH FAIL TO:' REAL ESTATE TAX NOTICE N FAITH )7#7)7!1.7713 PAYABLE FAITH A.NICOLA.TIC (717)791.7713 PROPERTY NI 310 iMRIIIAN AVENUE#UITE TO: 610 MERMAN AVENUE SUITE 4 1221020710E L#MDYNB.TA 97041.1311 LEMOYNE PA I7043.1m ASSES WVALUE LOCATION Of VAUD PROPERTY PROPERTY to 109.100 1017 WALNUT STREET 11210,257141 TAX SCHOOL NOMESTEAO EXCLUSION SCHOOL TAXIES PAID AT AS VALUE D D D RATE 9.34 aMS1iIBIBaRBFAS EHRAtE FARMSTEAD EXCLUSION 9.30 REBATE FACE PENALTY NOM#ST#AO#70CL0 REBATE 994.34 lY 0914112012 9 .il 0 BY ON01I74t 994,11 REBATE FARM#T9AOEXCIUBWH FACE 1,014.63 BY 11/01/2012 1,014.63 NET ASSESSMENT NY 11*1n01 1,0=4#3 FACE N#T At>IlsIRBpIT PENALTY 1.116.09 AFTERII/0112012 1.116.09 10!,100 AFT#R1tlaU201 1,11#.09 PENALTY 101,100 WEST SHORE SCHOOL DISTRICT TO: CMINtViAH,GNANACHANDRA I19 04MUK GNANACHANDRA M 606 ERFORD ROAD SOB ERFORO ROAD CAMP HILL PA 17D11 CAMP HILL PA 17011 HULL DATE•0770tt3ei2 BILL S 039594 FOR: 1017 WALNUT 3TAEET BILL*030!194 REBATE•"X11012 FACE.114 113 01 2 TAX YEAR.,3612.13 BILL DATE-07/01/2012 DELINQUENT BILLS ARE TURNED OVER TO TAX CLAN ON 17/W"12 TAXPAYER'S COPY TAX COLLECTOWS COPY TAX 12 Sl fAYE I Estate COPY Bill No: Ilia Conlml No., sin Date 7101,2012 :045.000074 PAVAR11 Assessed 2.sad 1lp"Vee"t Ninsrai Total 10 Va2uts 290261 02,100 0 103 600 DEBBIE LUPOLD,TREASURER EAST PEMNS6aI0 AREA S.D. Dt#GOunt Fact Pe"Ity 98 S.ENOLA DRIVE.ROOM 101 ENOLA PA 17WS-2704 Rates .02053340 .01052300 3♦ 10% SCHOOL R/2 1 1,060.62 11090-43 1,209.47 LasC MAF ASSESS.NO- 7.1 04-1 TAX AMOUNT DUE----> $1,0Q8.03 x14 MAP NO: 45.17.1044-143. M.43 $1,199.47 1306 THIRD STREET ACHES .040 DEED 00261103987 if Paid On or After 7/01/2012 9/02/2012 21/01/2012 if Paid On or Before 1 9132/2912 1 10/31/2012 1 12/31/2012 Rum*G G IS • � RECEIPT ARD PO LOT 39 MORTGAGE DO."SAFEE FOR EACH RESIDENTIAL i FAMILY -IF MY PD BY 12/31112 TWA BILL WILL BE RETURIM TO TAX CLM BUREAU FOR COLLECTION A FKJW OF A LIEN AGNST YOUR PROPERTY TAX CHINNIAH GNANACHANDRA M PAYER 506 ERFOhD RD CAMP HILL PA 17011-1122 w cc MONDAY-THURSDAY 9:00AM-4:OOPM IKwat CLOSED FRIDAYS&HOLIDAYS PHONE(717)901-9392 --,. If no II In!installments use the coupons blow to submit paYmen)9.It paying In luN Use ONLY tM 1ST coupon below to submit ps"nt. 2012 SCHOOL REAL ESTATE TAX NOTICE Bill Date:07101r.012 Control#: 15012-4 001$3 SUSQENITA SCHOOL DISTRICT L_.._RETURN THIS TOP PART'IF PAYING IN FULL MAR p ,f2 150,132.02-0$2.000 Make Cbeck Payable To: Prop.'type R CONWAY ILAM STS R,1R, TAX COLLECTOR Property Location and Description: Assessment- MARYSVILLE,PA 17053 226 LINCOLN SMW L= 22,100 Hours:OFFICE HOURS I TO 5 JULY 10 11,12 Be= 11,400 AUG 27 2$29.30,31 OCT 29 30 3'1 DEC 15 T- 113,so0 OTHERA BY APPT ONLY PHONE x 717-957-2502 Tax Description Rate As7tDUnt FOR RECEIPT ENCLOSE SASE SCHOOL R r'AL ESTATE I2.2000M 1,xm_ Taxes are due and payment is requefted froth: �IBRF�ORD ROAD CHANDRA M 2F PAID BEFORE Aug-31 -2* PAY —1,3S7.01 CAMP HILL PA 17011 Sep-01 TO Oct-31 PAY 1,304.70 AFTER Oct-31 +1011 PAY 1,523.17 2013 ANNUAL APPEALS ARE DUE IN ASSESSMENT OFFICE B Last day to Pay TZ C r 12/31/2012 UNPAID BILLS TO TAX CLAIM 0110112013. include addre#9ed envelope if return receipt required. ((;; tt`` !!ffii!! �p gbb!! 4u+luo�rYO:uva•uutwu 2012 Stattnrtni i,,tqt Estate Taxes Ekf,Date��._ 7 01r2C' ysnd iaq�rovssNet Ninsral Total AYPA6 Assessed . valves 59 100 93,606 ._ Petrel DEB81E LUPOLD.TREASURER EAST PENNSBORO AREA&D. Face-4, 96 S.ENOLA DRIVE.ROOM 101 ,01052540 2 10• ENOLP.PA 17025-270A Rates olo53sto ss i 1.664.91 6CROOL R/E ! 1.493.9! _t: = f5C AS SESS.NO.0900"99 TAX AMOUNT DUE----> s1,403.28- s1,513.55 s1,6ai.B1 S96CREEKSlDE1D�yb5. _ If Paid On or After 7//0172 17 9/01/1012=3,1 ACRES .900 DEED 00273/02455 if Paid on 0r a•fore 613 20 G/111.'01. SOUTH E NOLA IIETURN ONE COPY WFf"PAV&W "'IF TAXES ESCROWED FORWARD RESIDENTIAL H FAMILY RE IF NOT PD BY 201/12 INN BILL WILL BE RETURNED TO TAX CLM� BUREAU FOR COLLECTION a FILING OF A LIEN AONST YOUR PROPERTY Ax CHINNIAH GNANACHANDRA M AYER 506 ERFOAD RD CAMP HILL PA 170li-1122 MCI; MONDAY-THURSDAY 9:00AM•4:OOPM OURS CLOSED FRICAYS&HOLIDAYS PHONE(717)901.9392 It payingin installments use the coupons below to submit payments.If paying in fun use ONLY the 1 ST coupon below to submit payment. Ir�llll ##iil �#1118 TAX PAYER COPY Bill No: 1109 Control No:045.000070 2012 t nwnt at furl Estate Taxes Sal Date 7/01/2012 PAYABLE Assessed Land I Isprov.esot mineral Total TO vaIU•s 16 400 67 00 0 _ 0J."' 4 i DEBBIE LUPOLD,TREASURER EAST PENNSBORO AREA S.D. ( Rueouni ! Faot Penh 98 S.ENOLA DRIVE.ROOM 101 --� ENOLA PA 17025-2704 Rata .01052540 . i 01033540 I 2 t 10 R SC1rOOL R E 641:e` 179.92 967.91 new ASSESS NO-45M146 MAP NO: 45-16.1050-066. TAX AMOUNT DUE----> $862.32 W79.92 $967.91 404 STATE ROAD —t'.... ACRES 060 DEED 00265/04697 If Paid On or After i%01/2012 9/01/2012 11/01/2012 r If Paid On or aef'are 3112614�.1.j/3.j i 2u-i 12111/2022 SS f HAN 1 ACRE RETURN ONE COPY WITH PAYN Xr-'IF TAXES ARE ESCROWED FORWARD LANDLESS TO MORTGAGE CO.—*$1.00 FEE FOR EACH AWL COPY OR RECEIPT REST DE SS I 1 FAMILY 'IF NOT PD BY 12131/12 THIS BILL MALL BE RETURNED TO TAX CLM BUREAU FOR COLLECTION a FILING OF A LIEN AGNST YOUR PROPERTY Ax CHINNIAH,GNANA •AYER 506 ERFORD RD CAMP HILL PA 1 701 1-1 122 WFICE MONDAY-THURSDAY 9:ODAM-4!OOPM DUR6 CLOSED^RIDAYS&HOLIDAYS PHONE(717)901-9392 �_It Raying In Installments use the coupons below to submit payments.It payirro M full use ONLY the 1ST coupon below to submit esymenl. TAX 11�NIII I �� 1I Y COPY BIN . 22 Control No: 09-00/071 2012 taNmnt of al T BA D : 7/01/201 AYARLE Assessed Land Inerovasant Mineral Total DEBBIE LUPOLO,TREASURER values 36,300 149,500 0 197,500 4m ti-791, 98 S.ENOLA DRIVE.ROOM 101 EAST PENNSBORO AREA S.O. Pena nt Face l ENOLA PA 17025.2704 Rates .91653560 .01053540 1♦ 10% ?st ASSESS.NO.OSM286 SCHOOL R/1 1,917.14 1,916.67 2,174,34 MAP N0: 09.16.1060-324. ACRES FOR .250 DEED 00253'02930 TAX AMOUNT DUE---> 51,815.80 91,052.00 $2,030.13 &MARSHALL DRIVE RIDLEY PARK If Paid On or After 7/01/3012 9/01/2012 11/01/1012 LOT 1 BILK G PL 3 PB 14 PG 22 If Paid On 4W Naar& InLaw 1 3 2011 li 1 1 11 RESIDENTIAL FAMILY RETURN ONE COPY WITH PAYMHR'-WTA>rlB ARE EBCROMIEDi0fliyyARD TO MORTGAGE CO.••"37.00 FEE FOR EACH ADM COPY OR RECEIPT CHINNIAH GNANACHAN DRAN M IF NOT PD SY 1201112 THf3 BILL WILL BE RETURNED TO TAX CLM �.a 506 NIAH G RD BUREAU FOR COLLECTION A FtuNO OF A LIEN AGNST YOUR PROPERTY CAMP HILL PA 17011-1122 NOTICE OF PROPERTY TAX RELIEF r MONDAY-THURSDAY 9:00AM-4:OOPM Your enclosed tax bill Irrdudes a tax reduction for your homestead and/or farmstead CLOSED FRIDAYS&HOLIDAYS prop". As on elgible homestead and/or farmstead properly owner,you have received tax relief through a homestead andrW farmstead exclusion which has been provided PHONE(717)901.9392 under the Pennsylvania Taxpayer Relief Act,a law passed by the Pennsylvania General Assembly designed to reduce your property taxes. GNANACHANDRA CHINNIAH and SUGANTHINI CHINNIAH, Plaintiffs IN THE COURT OF COMMON PLEAS V. OF THE NINTH JUDICIAL DISTRICT AMERICHOICE FEDERAL CREDIT UNION and DALLAS J. ZULLI, Defendants 2012-05469 CIVIL TERM IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFFS' COMPLAINT BEFORE PLACEY, X ORDER OF COURT AND NOW, this 11th day of February 2013, upon review of the Defendants' Preliminary Objections, complaint and Defendants' brief, the complaint is found to be legally insufficient, as it fails to state a cause of action upon which relief can be granted. Plaintiffs are given thirty (30) days from the date of this Order of Court to file an amended complaint that conforms to the Pennsylvania Rules of Civil Procedure. It is further noted that this court finds scandalous and impertinent paragraphs 27, 29, 30, and 31, together with portions of paragraphs 28 and 32 that do not reference Plaintiff's potential claim, assuming properly plead, that Defendants refused to refund money paid in the amount of$4,200.00. Scandalous and impertinent language is not to be used in an amended pleading. w =CL - Thomas Jacey mss,• N ,-, , Distribution: r - Gnanachandra M. Chinniah,pro se Suganthini Chinniah,pro se > p James J. Franklin, Esq. :: F,) Judge Guido recused himself from consideration of this case. ...-s'�:�-- ...-- .►,'/' GNANACHANDRA CHINNIAH and : IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH :CUMBERLAND COUNTY c-) " c -10:x w --4.n Plaintiffs �,� ?,, i-ni V. : CIVIL ACTION LAW `�'cT; rZ) °n {CJ c �1 AMERICHOICE FEDERAL CREDIT UNION and DALLAS J. ZULLI : No.2012-5469 Defendants NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages,you must take action within twenty(20)days after this Complaint and Notice are served,by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint or for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER,GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER,THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. CUMBERLAND COUNTY BAR ASSOCIATION 32 S. Bedford Street Carlisle, PA 17013 (717)249-3166 or(800)990-9108 GNANACHANDRA CHINNIAH and : IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH : CUMBERLAND COUNTY Plaintiffs V. :CIVIL ACTION LAW AMERICHOICE FEDERAL CREDIT UNION and DALLAS J. ZULLI :No. 2012-5469 Defendants FIRST AMENDED COMPLAINT AND NOW,this kim day of March,2013,comes Plaintiffs,Gnanachandra Chinniah and Suganthini Chinniah,and files this First Amended Complaint as follows: I. Plaintiffs,Gnanachandra Chinniah and Suganthini Chinniah,are adult individuals who reside at 506 Erford Road,Camp Hill,Cumberland County, Pennsylvania 7011 (hereinafter referred to as"Plaintiffs"). 2. Defendant, AmeriChoice Federal Credit Union, is a community credit union,doing business in the Commonwealth of Pennsylvania with an office at 2175 Bumble Bee Hollow Road, Mechanicsburg,Cumberland County, Pennsylvania 17055 (hereinafter referred to as "Defendant AmeriChoice"). 3. Dallas J.Zulli was,at all times relevant,employed by Defendant AmeriChoice as a vice president of Business Lending and acting within the scope of his employment by Defendant AmeriChoice. I 4. Dallas J. Zulli was,at all time relevant,the Director of Ambulance Service for East Pennsboro Township,Cumberland County, Pennsylvania. 5. The said East Pennsboro Township is a Defendant in a lawsuit pending in the Cumberland County Court of Common Pleas and a second lawsuit pending in the United States District Court for the Middle District to which Gnanachandra Chinniah and Suganthini Chinniah are parties. 6. Dallas J.Zulli's affiliation and loyalty to East Pennsboro Township was undisclosed, presented a serious conflict of interest for both Defendants and provided a motive, basis or ground for both Defendants' malicious, unreasonable and vexatious conduct as hereinafter detailed. 7. On or about June 13,2012, Plaintiffs submitted a credit consolidation loan proposal for $400,000 to Defendant AmeriChoice. 8. On or about June 19,2012, Plaintiffs completed a Defendant AmeriChoice Member Credit Application for a$400,000 loan with three(3)of Plaintiffs' residential rental properties as collateral. 9. On or about June 22,2012, Dallas J.Zulli sent an email to Plaintiffs suggesting the inclusion of more properties as collateral in order to meet Defendant AmeriChoice's requirements and to increase the amount of the loan. 10. On or about June 25,2012, Dallas J.Zulli,gave to Plaintiffs a proposal for a$1.4 million credit consolidation loan and taking fifteen(15)of Plaintiffs residential rental properties as collateral,all of which was documented by a spreadsheet,a copy of said spreadsheet and 2 related emaiIs being attached hereto, collectively marked Exhibit"1"and incorporated herein by reference. 11. On or about July 7, 2012, Dallas J.Zulli, by email, requested the Plaintiffs to submit an "Updated Application and Personal Statement,"a copy of said email being attached hereto, marked Exhibit"2"and incorporated herein by reference. 12. In response to a request from Dallas J.Zulli,on or about July 9, 2012, Plaintiffs, in good faith, submitted another"AmeriChoice Member Credit Application"to Defendant AmeriChoice for$1,400,000,and in reliance upon Dallas J. Zulli's representations that the significantly higher closing costs would be offset by the benefits of the loan package offered by Defendant AmeriChoice,a copy of the"AmeriChoice Member Credit Application"being attached hereto, marked Exhibit"3"and incorporated herein by reference. COUNTI BREACH OF CONTRACT 13. Paragraphs I through 12 hereof are incorporated herein by reference as though fully set forth herein. 14. On or about July 10,2012, Dallas J.Zulli provided Plaintiffs with a"Commitment Letter"for a loan in the amount of$1,400,000 for"Refinancing Existing Debt", a copy of said letter being attached hereto, marked Exhibit"4"and incorporated herein by reference. 15. On or about July 20,2012, Plaintiffs signed the loan commitment letter and gave a check in the amount of$2,100 to AmeriChoice towards the projected$6,300 appraisal cost. 3 16. Plaintiffs acceptance of the commitment letter created a contract between Plaintiffs and Defendant AmeriChoice. 17. On or about July 20,2012, Dallas J.Zulli sent the signed"Commitment Letter"to Attorney Gregory R. Reed and authorized him to do the title work in anticipation of closing. 18. Plaintiffs provided the appraiser with copies of the existing appraisal reports for the properties that included the floor plan of each property so the appraiser could save time in measuring the individual living areas,etc. 19. Plaintiffs also provided the appraisers with the details of specific rental agreements for each unit, utilities and tenant specific situations to coordinate inspections. 20. Between July 30,2012 and August 2,2012 the real estate appraiser,chosen by Dallas J. Zulli,conducted inspections of the fifteen (15)residential rental properties that were to be used as collateral for the$1.4 million loan,taking numerous pictures. 21. Upon completion of the inspection of all fifteen(15)properties,on or about August 8, 2012, Plaintiffs paid to Defendant AmeriChoice a second installment of$2,100 towards the appraisal fee. 22. On or about August 27,2012, Dallas J.Zulli advised Plaintiffs that only ten (10) appraisal reports were completed;that those values were"lower than expected",and the balance of$2,100 needed to be paid for the remaining appraisal reports to be completed to determine if the grand total of appraisals will meet the"target value of$1,750,000". 4 23. The Agreement between the parties specifically provides that the final installment payment for the appraisals, in the amount of$2,100,was not due until settlement or delivery of the final appraisals to Plaintiffs. 24. Defendant AmeriChoice stopped the loan process, refused to offer a loan for a lesser amount and refused to complete the transaction despite the fact that Plaintiffs had fully complied with the Agreement and five(5)appraisals were not complete. 25. On or about August 30,2012, Defendants AmeriChoice's counsel sent a letter to Plaintiffs explaining Defendant AmeriChoice's reasons for the"revocation of the loan commitment"and AmeriChoice's refusal to refund the$4,200 already paid by Plaintiffs,a copy of said letter being attached hereto,marked Exhibit"5"and incorporated herein by reference. 26. By August 27,2012, Plaintiffs had already incurred$1,685.00 in costs for title searches, tax certifications,etc. WHEREFORE, Plaintiffs Gnanachandra Chinniah and Suganthini Chinniah respectfully request this Honorable Court to enter judgment for Plaintiffs and against Defendant AmeriChoice Federal Credit Union in the amount of$5,885.00 together with costs which amount is not in excess of the jurisdictional amount requiring compulsory arbitration in Cumberland County,Pennsylvania. COUNT If FRAUD 27. Paragraphs I through 26 inclusive hereof are incorporated herein by reference as though fully set forth herein. 5 28. Dallas J.Zulli represented to Plaintiffs that Defendant AmeriChoice would have all fifteen(15)appraisals done and completed before a final decision was made on the loan and that if the value of the fifteen appraised properties was insufficient to support a loan for$1.4 million dollars that the amount of the loan would be reduced to provide Defendant AmeriChoice with sufficient collateral. 29. Such representations made by Defendant AmeriChoice were false,and Defendant AmeriChoice knew they were false when made and they were made with reckless indifference to their falsity. 30. The said false representations were made to the Plaintiffs for the purpose of causing them to rely on the representations. 31. Plaintiffs did reasonable and justifiably rely upon the false representations made to them by Defendant AmeriChoice by paying$4,200.00 to Defendant AmeriChoice and contracting with Gregory R. Reed, Esquire to perform title services. 32. The aforesaid conduct by Defendant AmeriChoice is outrageous, unreasonable and with malicious intent to harm Plaintiffs. WHEREFORE, Plaintiffs Gnanachandra Chinniah and Suganthini Chinniah respectfully request this Honorable Court to enter judgment against Defendant AmeriChoice Federal Credit Union in the amount of$5,885.00, plus interest and costs of this case as well as punitive damages, which amount is in excess of the jurisdictional amount requiring compulsory arbitration in Cumberland County, Pennsylvania. 6 COUNT III UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION VIOLATION 33. Paragraphs 1 through 32 hereof are incorporated herein by reference. 34. Plaintiffs are consumers as defined by the Unfair Trade Practices and Consumer Protection Law("UTPCPL"),73 P.S. Sections 201-1 et seq, and are authorized to bring a private action against Defendant AmeriChoice under the UTPCPL. 35. Defendant AmeriChoice trades and does business as a community credit union and lending institution. 36. The services contracted for from Defendant AmeriChoice were intended for personal or family purposes. 37. Defendant AmeriChoice,through its actions and dealings with Plaintiffs,caused a likelihood of confusion and misunderstanding as to the source,sponsorship,approval or certification of services. 38. At least five(5)of the appraised property values are significantly lower than the tax assessment values established by Cumberland County,while the remaining five(5)values are slightly lower. 39. Defendant AmeriChoice intentionally misinterpreted and/or misrepresented ten(10) appraisal reports and falsely asserted that the"projected grand total"of fifteen(15)appraisals would be less than the target value of$1.750,000. 7 40. Defendant AmeriChoice's refusal to complete the remaining appraisals and/or to discuss options to modify the loan amount to meet their ratio of 80 percent loan to value was not only a serious breach of contract terms, it was also an act of bad faith. 41. Defendant AmeriChoice engaged in a pattern of deception and misrepresentation in the lending process. 42. Defendant AmeriChoice engaged in a pattern of wilful deception and misrepresentation entitling Plaintiffs to recover punitive damages,up to treble damages for their claim. 43. Plaintiffs are also entitled to costs relative to this lawsuit and to recover the damages due and owing them due to Defendant AmeriChoice's pattern of deceit. 44. In addition to the amount demanded in Counts I and 11 of this First Amended Complaint, and because of the deceptive, intentional,malicious,wanton and outrageous nature of Defendant AmeriChoice's conduct, Plaintiffs are entitled to recover punitive damages up to treble damages for their claim. WHEREFORE Plaintiffs Gnanachandra Chinniah and Suganthini Chinniah respectfully request that this Honorable Court enter judgment against the Defendant,AmeriChoice Federal Credit Union, for violations of the Unfair Trade Practices and Consumer Protection Law, including punitive damages in accordance with the Unfair Trade Practices and Consumer Protection Law, interest,costs and such other relief as this Honorable Court deems just and equitable,all in an amount in excess of the jurisdictional amount requiring compulsory arbitration in Cumberland County, Pennsylvania. 8 Gnanachandra Chinniah, Plaintiff 506 Erford Road Camp Hill,PA 17011 (717)732-6273 chinniahg@hotmaii.com Suganthini Chinniah,Plaintiff 506 Erford Road Camp Hill,PA 17011 (717)732-6273 chinniahg@hotmail.com 9 VERIFICATION We,Gnanachandra Chinniah and Suganthini Chinniah hereby verify that the statements in the foregoing Amended Complaint are true and correct to the best of our knowledge, information,and belief. We understand that the statements therein are made subject to the penalties of 18 Pa.C.S.A.Section 4404,relating to unsworn falsification to authorities. Date: 0,311 13 -- Gnanachandra Chinniah Date: X73 1:2 —�.- Suganthini Chinniah A Proposed Debt Monthly Annual Total Private Loan(Harris)-Wyncote $ 84 .00 � 10,118.00 $ 99,500.00 Metro(Commerce)-Cassatt $ 1,953.00 $ 23,436.00 $ 128,800.00 Honda Auto $ 535.00 $ 6,420.00 $ 24,700.00 Consolidation Loan $ 9,446.00 $113,352.00 $ 1,392,919.00 Total $ 12,777.00 $153,324.00 $ 1,645,919.00 Consolidation Loan Estimated MV $2,190,000,00 AmeriChoice would require a first Estimated Loan Amount $ 1,392,919.00 lien mortgage security interest in all properties except for Wyncote and Interest st Rat 5.25% Cassett. The auto loan was left out; Estimated Payment $ 9,446.00 however, if you want to include that Y payoff you should have enough equity in the real estate. Eaftated Closing Costs The estimated closing costs do Loan Origination $ 7,000-00 not Include any prepayment Recording Costs $ 500.00 penalties. I do not know if any of Flood Certifications $ 375.00 the loans to be paid off have such Tax Monitoring Costs $ 1,425.00 penalties. I imagine the Appraisals $ 6,525.00 commercial loans might have Title Insurance $ 5,790.00 penalties, but could have run their Loan Documents $ 500.00 course depending on how long Misc. Fees $ 250,00 ago they were taken out. Total $ 22,365.00 Difference in Monthly Cash Flow $ 8,381.00 _r Dam Monthly Annual Total - Est.Value ��•�+��� - ASC-411 Water $ 891.00 $ 10,692.00 $ 58,500.00 $ 12 0 ASC-36 Creekside $ 938.00 $ 11,256.00 $ 59,300.00 $ 140,000.00 Metiife(1st Horizon)-306 3rd $ 813.00 $ 9,756.00 $ 63,000.00 $ 120,000.00 BOA-406 Fairview Ave $ 236.00 $ 2,832.00 $ 75,000.00 $ 90,000.00 Nation(1st Horizon)-Primary $ 1,356.00 $ 16,272.00 $ 121,000.00 $ 225,000.00 Nation(1 st Horizon) -Lincoln $ 1,063.00 $ 12,756.00 $ 55,800.00 $ 130,000.00 PNC(Nat'l City)-1st on Louther $ 1,838.00 $ 22,056.00 $ 105,000.00 $ 250,000.00 Chase-493 State $ 960.00 $ 11,520.00 $ 58,500.00 $ 125,000.00 Chase- 120 N. 2nd $ 937.00 $ 11,244.00 $ 60,700.00 $ 125,000.00 Chase-404 State $ 586.00 $ 7,032.00 $ 34,500.00 $ 80,000.00 Integrity-502 State& 198 Creek $ 1,804.00 $ 21,648.00 $ 213,700.00 $ 225,000.00 Private Loan(Harris)-Wyncote $ 843.00 $ 10,116.00 $ 99,500.00 $ 132,000.00 Metro(Commerce)-Cassatt $ 1,953.00 $ 23,436.00 $ 128,800.00 $ 250,000.00 PNC Bank-Linden $ 1,982.00 $ 23,784.00 $ 127,255.00 $ 300,000.00 Chase Bank- 1017 Walnut $ 774.00 $ 9,288.00 $ 48,889.00 $ 120,000.00 Chase Bank-493 State $ 861.00 $ 10,332.00 $ 50,243.00 $ 135,000.00 Integrity LOC-411 Water 2nd $ 100.00 $ 1,200.00 $ 24,000.00 $ - Integrity Bank-Various in 2nd $ 939.00 $ 11,268.00 $ 111,539.00 $ Metro LOC-2nd on Louther $ 276.00 $ 3,312.00 $ 31,100.00 $ - Private Loan(Harris)- 120 N. 2nd $ 290.00 $ 3,480.00 $ 17,000.00 $ - Honda Auto $ 535.00 $ 6,420.00 $ 24,700.00 BOA Credit Card $ 18.00 $ 216.00 $ 1,833.00 Lowes Credit Card $ 52.00 $ 624.00 $ 1,768.00 BOA Credit Card $ 169.00 $ 2,028.00 $ 7,950.00 BOA Credit Card $ 444.00 $ 5,328.00 $ 18,200.00 Sears Credit Card $ 135.00 $ 1,620.00 $ 4,266.00 M1st FCU Credit Card $ 90-00 $ 1,080.00 $ 4,511.00 Home Depot Credit Card $ 142.00 $ 1,704.00 $ 12,000.00 Metro Credit Card $ 133.00 $ 1,596.00 $ 5,000.00 Total $2�1,158.00 $253,896 00 $ 1,623,554.00 $ 2,572,000.00 ^ " Page lof 5 RE: Update DallamZuIfl Mon G/25/1Z3:04PM GnanaChinniah(chinniahg@hotmai/.com) lattachment Gnanm. I've attached a spreadsheet outlining the debt consolidation loan we discussed. Once you've had a chance bz review it please give mea call with any questions. Thanks, Dallas J. ZuUi VP Business Lending AmehChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone(717) 5Q1-12GO Fax(717)GQ7-3713 Email 6me,iChoicc Federal Credit Union and all its mortgage loan ohginuurrsare registered with the Nationwide Mortgage Licensing System,o free service for consumers m confirm that the mortgage company nrmnug�e professional with whnm they wish m conduct business|slicensed. Licensing in0mnno/ino can bp obtained ux . My license number is: 54�$848 numitui rant tviessage Page 2 of 5 hiotiea- The infortrtn6on contained in this message m*#y 6.pri..ilagvJ.—t,lidontial,and prutcvIcd ti'0177 dhiclusurv. If the reader of this message is not the intended recipient,you are hereby notified that any dissemination. distribution,or copying_of this communication is strictly prohibited. If you have received this communication in error,please notify us immediately by replying to this message,and then delete it from your computer. All e-mail sent to this address will be received by AmeriChoice's corporate e-mail system and is subject to archiving and review by someone other than the recipient. From: Gnana Chinniah (mailto:chinniahg @hotmail.com) Sent: Friday, June 22, 2012 5:16 PM To: Dallas Zulli Subject: RE: Update Dear Dallas, Sorry I did not have a chance to read your email until I came home at 5:05 pm. I am open for further consolidation if you want to suggest a group of properties/loans so we can discuss. I am open to consolidate 306 Third Street together with the 3 properties that I have provided. I will come up with some more alternatives so we can try to meet your numbers/ratios as you are a very smart banker and helpful. You can call me at my office phone number on Monday or I will stop by noon after speaking to you in the morning. I have a surgery scheduled on July 11th which will likely require 2 or 3 weeks of recovery time. So please help me close this before 10th, if possible. Have a Good Weekend, Regards, Gnana Subject: RE: Update Date: Fri, 22 Jun 2012 13:33:40 -0400 From: dzulli @americhoice.org To: chinniahg @hotmail.com Gnana, We pulled credit(which was fine)and reviewed the entire ftnaneial package this morning. As stated before, the proposed loan and respective property numbers look good: however, the overall debt requirements may be prohibitive and require further consolidation. I'd like to discuss consolidating additional properties/loans to improve the global debt coverage. As presented, the debt service coverage ratio is coming up short of our loan policy requirement. i think further consolidation may give you more flexibility, improve your cash flow each month and allow us to payoff your credit cards and http:"/sn122w.sntI22.triail.live.com/mail/PrintMessac es.asps'?cpids=83ccba89-bets-I IeI-... 6/23/N 12 ^ ^ 3 �f5 Bobma� Print P_=-nm� ' higher interest rate loans. Please let me know if you have time today or early next week to stop by and go over some numbers/ophons. Thanks. Dallas JZuUi VP Business Lrndio,-, AmehChoime Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone(717)501-128G Fax(717)807-3718 Email 6medChoice Federal Credit Uniouxn6xU its mortgage loan originators are registered with the NoionvWe Murti.,maeLi,cnsinq5f$cm.0 free service for xomumentncunfinn that the mortgage company u,mortgoge professional with whom they wish mconduct business is licensed. Licensing information can 6c obtained ut NN,11 In I SC 011SLI In . Wy license number is: 843848 Notice: The information contained in this messaue may be privileged.confidential.and protected from disclosure. I f the reader of th is messaee is not the intended recipient.vou are hereby noti fied that an\r dissem ination. distribution.or copying o this communication imotr|cdK prohibited. If you have received this communication in error.please notily us immediately by replying to this message.and then delete it from)-ourcornputer. A\|o-nmi| sent m this address will bo received 6y AmeriChnice'x corporate e-mail system and is subject(u archiving and review by someone other than the recipient. Fromm: Gnona Chinnioh (maUhm:chinniahg@hohnaiicon) Sent: Tuesday, June 19, 2012 10:50 PM To: Dallas ZuUi Subject: RE! Update o Dear Dallas, Thank you very much for the update and your help. I will drop-off the completed application at your office tomorrow or fax it over. I look forward to establish a long-lasting business relationship with Americhoice as my primary banking institution. Please let me know if you need any additional information or have questions. Regards, Gnana Chinniah Subject: RE: Update Date:Tue, 19 Jun 2012 1650:03-0400 From: dzulli @americhoice.org To: chinniahg@hotmail.com Gnana, The numbers look pretty good on the properties and the proposed consolidation. Can you please complete, sign and return the attached application and I'll get things moving forward with our underwriter. I'll also get estimates for appraisals in the interim. Thanks, Dallas J. Zulli VP Business Lendini) AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone(717) 591-1266 Fax(717)697-3713 Entail Itulli�i.unc rich ;i c.� http://sn l 22w.siitl 22.inail.live.com/mail/1'riiitMessages.aspx'?cpids=8")ecba89-bet8-1lei-... 6/25/2012 y i nuunun rrtttt tviessage Page 5 of 5 AmeriChoice Federal Credit Union and all its mortgaoze loan originators are registered%%ith the Nationwide Mortgage Licensing System.a free service for consumers to confirm that the mortgage company or mortgage professional with whom they wish to conduct business is licensed. Licensing information can be obtained at �« My license number is: 543848 Notice: The information contained in this message may be privileged,confidential,and protected from disclosure. If the reader of this message is not the intended recipient,you are hereby notified that any dissemination, distribution.or copying of this communication is strictly prohibited. If you have received this communication in error.please notify us immediately by replying to this message,and then delete it from your computer. All e-mail sent to this address will be received by AmeriChoice's corporate e-mail system and is subject to archiving and review by someone other than the recipient. From:Gnana Chinniah [mailto:chinniahg @hotmail.com] Sent:Tuesday,June 19, 2012 1:36 PM To: Dallas Zulli Subject: Update sorry I mistyped your email address! From: chinniahg @hotmaii.com To: ddzulli @americhoice.org Subject: Update Date: Tue, 19 Jun 2012 12:28:34 -0400 Dear Dallas, Please provide some update as to the status or if you need any additional information. Thanks, Gnana Chinniah http://sn 122w.snt 122.mail.live.com/mail/PrintMessages.aspx?cpids=83eeba89-bet8-11 a 1-... 6/25/2012 . Hotmail Print Message Pagel of 2 RE: Commitment Letter and Appraisal/Title Work Dallas Zulll(dzuili @americhoice.org) Fri 7/06/12 4:15 PM Gnana Chinniah(chinniahg @hotmail.com) Gnana, I should be able to deliver you a commitment on Monday. Can you please send me the updated application and personal statement as we discussed? Fax or e-mail is fine. Thanks, Dallas J.Zulli VP Business Lending AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone(717) 591-1266 Fax (717)697-3713 Email(,izulli(ii'aiiit:i-ichoice.orty AnteriChoice Federal Credit Union and all its mortgage loan originators are registered with the Nationwide Mortgage Licensing System,a free service for consumers to confirm that the mortgage company or mortgage professional with whom they wish to conduct business is licensed. Licensing information can be obtained at %N.n ill isconsumeracct:ss.oa. My license number is: 543848 Notice: The information contained in this message may be privileged.confidential.and protected from disclosure. If the reader of this message is not the intended recipient,you are hereby notified that any dissemination. http://sn 122w.snt 122.mail.live.com/mail/PrintMcssages.aspx?cpids=52adeb96-c7a7-1 l el-8... 7/8/20I2 Hotmail Print Message Page 2 of 2 distribution,or copying of this communication is strictly prohibited. If you have received this communication in error,please notify us immediately by replying to this message,and then delete it from your computer. All e-mail sent to this address will be received by AmeriChoice's corporate e-mail system and is subject to archiving and review by someone other than the recipient. From:Gnana Chinniah [mailto:chinniahg @hotmail.com] Sent; Friday, July 06, 2012 3:56 PM To: Dallas Zulli Subject: Commitment Letter and Appraisal/Title Work Dear Dallas, I was hoping to get your commitment letter so I can bring the check after conferring with Any. Greg Reed about the timeline etc. Please call or respond via email. Thanks, Gnana http://sn l 22w.snt l 22.mail.live.com/mail/PrintMessages.aspx?cpids=52adeb96-c 7a7-l l e 1-8... 7/$/2012 ' rtotman rnnt Message Page I of 7 RE: Update Gnana Chinniah(chinniahg @hotmail.com) Thu 6/28/12 10:51 PM dzulli @americhoice.org Dear Dalls, I apologize for the delay in my response as I was extremely busy with my work at Gannett during the day, and at properties this evening. Anyway,I will try to get the updated information tomorrow. I strongly believe that your underwriters would have already given you their blessings and you will get the same from the loan committee as well. Please keep me posted as soon as you get the good word so I can enjoy this weekend. Thanks for all your help. Regards, Gnana Subject:RE: Update Date:Thu,28 Jun 2012 08:45:54-0400 From:dzulli @americhoice.org To:chinniahg @hotmail.com Gnana, The personal financial statement on Metro Bank's form is dated 6/9/2011. f hadn't noticed the"2011" part. Can you please update the statement using our form(attached)? Also, I've attached anew application since the loan amount has increased substantially. Thanks, Dallas J. Zulli VP Business Lending AmeriChoice Federal Credit Union 2175 Bumble Bee Hollow Road Mechanicsburg, PA 17055 Phone(717)591-1266 Fax(717)697-3713 http://sn 122w.snt 122.mail.live.com/mail/PrintMessages.aspx?cpids=a9fc3969-66da-4eb8-b... 7/8/2012 019011IRAi tRIDIT UNION TO PROCESS THIS APPLICATION ALL REQUESTED INFORMATION MUST HE PROVIDED x New Request Renewal Modification MEMBER BUSINESS CREDIT APPLICATION Compmmy Name:Gnana Chinniah elephone Number:71'77326273 Company Address:506 Erford Road City:Camp Hilt I State:PA Zip:17011 Company Mailing Address: Cityl State: Zip: Are Facilities Owned or Leased: Monthly Pa em: S Years in Business: Tax ID Number: Type of Business NAICS : Gross Annual Sales: $240,000 Business X Proprietor Partnership S» C-Corporation Limited Liability Corp/Comp. C How mach would you like to borrow and what are the requested repayment terms?31,400 000 Term:26 Yrs How are you usins these funds?:Credit Consolidation value?: 15 over$2.1 . Nate Title Percentaite otOwnership Gnana Chinniah and Suganthini Chinniah Owners 100% Lender Type of Loan Current Balance Monthly Payment Secured by Please see attached schedule of Real $ S Estate owned by the Chirmiahs $ 5 $ S S $ $ S Totals. 1 $ S Any unsett led lawsuits,judgments or disputes?: I X Lyes I I Na If yes,what and why:Plaintiffs in a Civil Rights lawsuit that is very likely to scale or get a jury verdict favorably to the borrowers Bankruptcy ever filed by business?: Yes I X f No I I if yes,when?: An tart ob ?: Yes I X Na If yes,why?: Service Yes No IrYeS6 Name of Provider: Checking Account X Balance: $10,000 Savings Account Balance: S Cash Management Other This Credit Union may check credit and trade references in reviewing this application,and disclose information about its credit experience with applicant,as authorized by law. This Credit Union may also check the personal credit history of the principal ownw(s)and/or key individual(s). In addition to the information requested on this application,this Credit Union may wbstquently request addamIal atfomration lion the sppiiant. Appiietst nothariaaa the Credit Usbs to Nation this rnterandos soataiaai is dis appilleolon.any trait report sad:pars"d"oeiai tatera ades with the Credit Union's Servieer solely for the purposes of me& wrldog this soon. As an authorized agent of the applicant company,I have stated that everything in the application and information submitted along with the apph i is true. j(wq>3gree that this Credit Union may provide information about me(us)or my(our)account to others. Gnana Chinniah 07 `;Ao Authorized Signature(Must be an Officer of Company) Printed Name Title Date .'�.f �a 'c.�.. Suganthini Chinniah 0 1) 0q j a 0l, Z Authorized Signature(Mast be an Officer of Company) Printed Name Title Date s + PERSONAL FINANCIAL STATEMENT I C�Nk�1{r /yNt I 1 z i � LE-e Ft�,D P u- I ! 17 7 3 b x 2 2 t. Total Assets should egwdTotal Liabilities+Net Wort Date ofS t: 2 Phowum algis&mmudma by Placing as"x^in Owned a o l."t. Cash (SchedWe 1) j �*-A Real Estate Mort s)(Schedule S/ Investments- $ Installment Loans(Schedule T) S Marketable Stocks&Bonds Schedule 2 Accounts&Notes Receivable S Credit Cards S Real Estate Owned(Schedule 3) Federal Income Tax $ Auto Year 7o1/ Make S Other Liabilities S Auto yewAgr Make S Total Liabilltiea S Cash Value Life Insurance CSVLI(Sch.4) $ Net Worth S Retirement/Profit Sharing Accounts(Sch 5) $ (Total Assets Minus Total Liabilities) Business Ventures(Schedule 6) $ *See ,�, ��•�{ �`vrt��" Other Assets S Jotl 3 T S T Litabilltiari+Nast W Dirt$ s SALARY OCCUPATI ON OR TYPE OF BUSINESS I I S C7r I ISO-01 t i7y 2 1 $ 2 Bonuses&Commissions $ Em to er How Long Employed Dividends&Interest $ 1 ,fn^ 1 Rents&Royalties S 2 2 Other(itemize) $ Position Held Total Annual Income S 321,oenO ! ALIMONY-CHILD SUPPORT: Inclusion of alimony,separate 2 maintenance or child support as income is voluntary and need not be Number of De ndents revealed if you do not wish to have it considered. If you choose to include such payments.please describe if by the court and case number,the amount 1 and the name and address of the person obligated to pay that amount to 2 you. If you are responsible for paying alimony,separate maintenance or child support. please give particulars of the obligation along with your Other Endorser or Co-maker on Notes? Brief Description: Information 1. Yes No 2. Yes No r..y _40e,te„,;t.zq Defendant In Any Legal Action? �GYSsr� ;o`t r y� LJYJ Yes ] jNoJ2. 1 jYesj Bankruptcy Ever Filed? �p -� . ' 1. Yes No 2. Yes No �!°• �5rr..5 �4c lr+ea0".4- ' >�.�.>f Schedule t Name of Financial Type of Owner JO If Pledged,To Whom? Balance Institution Account Cash, A4 G t' . ;• C rY,;r � 7C �'�' ''O Checking, Savings, CD's, MM's Schedule 2 Description Registered in #of Share or Par Total Market Value Where Pledged? Name Of Investments- $ Stocks& $ Bonds $ Schedule 3 Description and Titled To Market Value Mortgage Lender Balance Mo.Pymt Location Real zz $ Estate $ Owned $ Schedule 4 Name of Insurance Policy Beneficiary/Relationship Amount Loans CSVLI Com Owner Life Insurance Carried Schedule S %Vested Company Account Manner of Payout Distribution Date Amount Name # Vested interest in Retirement/ Profit Sharing Accts Schedule b Business Names in Position or Line of Years in Current %of Business Present which you are a Title Business Business Market Ownership Net Value principal or partner Value Worth Your% Business Ventures Schedule 7 Lender JO Origination Balance Monthly Final Payment Collateral Date Pa ment Date Loans owed $ $ to CU's, $ $ Banks,and $ $ others $ $ 1(we)confirm that this financial statement is given to you by me for the purpose of obtaining credit from time to time;that 1 have read the same and that it is true and complete. I agree that if,in your sole opinion,this financial statement is found to be incorrect any one or more or all of my obligations to you at your sole discretion may be matured by you without demand upon formal notice to me. I(we)authorize this Credit Uni©n disclose the information contained in this application,any credit report and personal financial Information with this Crd t Union's Servicer,solely for the purposes of underwriting and servicing this loan. Applicant authorizes the Credit tlaion t obtain a Personal and/or Business Credit Report through its Servicer. , t. Signature ��c.�...-- - Date 7 2--- Signature _� ;y„ f c Date O:1 QVI.2012,. , f t AmeriChoke FEDERAL CREDIT UNION Building Relationships For Life July 10,2012 Gnanachandra M.and Suganthini Chinniah 506 Erford Road Camp Hill, Pa. 17011 Dear Gnana and Suganthini: AmeriChoice Federal Credit Union(the"Lender")is pleased to advise you that,subject to the terms and conditions hereinafter set forth;it hereby approves your request for the proposed loan described below. The loan is subject to(1)Acceptance of this proposal;(2)Compliance with all the provisions hereof,(3)The statutory and other requirements by which AmeriChoice Federal Credit Union is governed;and, (4) Borrower(s)'s compliance with all the terms and conditions stated in this letter: 1. Borrower(s) : Gnanachandra M. and Suganthini Chinniah 2. Amount of Loan : $1,400,000.00 3. Purpose of Loan Refinance existing debt 4. Term 120 month term loan with balloon;Payments to be amortized over 240 months 5. Monthly Payment : The monthly payment will be approximately$9,494.23;Payments include principal and interest due and payable commencing one month after date of settlement,unless otherwise stated in the Loan Documents 6. Late Payment Fee : 5%of total payment after 15 days past due,minimum of 525.00 7. Interest Rate The interest rate will be fixed at 5.25%for 60 months thereinafter converting to a variable interest rate; the variable interest rate will adjust monthly to changes in the Wall Street Journal Prime Rate; The variable rate will be set equal to the highest base rate plus 1% on corporate loans posted by at least 75%of the nation's thirty largest banks that The Wall Street Journal publishes as the Prime Rate with an interest rate floor of 4.50% Main Office:2175 Bumble Bee Hollow Road •Mechanicsburg,PA 17055 •Phone-.(717)697-3474 •Fax:(717)697-3713 Wehcitire www.imwrichoica-orp tENOr F 101p1 0 CRWi'JKO ro 8. Collateral Lender will hold a first lien security interest in the land,buildings, and fixtures located at: 506 Erford Road,Camp Hill, PA 4600-4608 Linden Avenue,Mechanicsburg,PA 576-580 W. Louther Street,Carlisle, PA 411 Water Street,New Cumberland, PA 1017 Walnut Street, Lemoyne,PA 120 N. Second Street, Enola,PA 493 State Street, Enola,PA 306 Third Street,Enola,PA 439(1439)N. Second Street,Enola,PA 404 State Street,Enola,PA 198 Creekside Drive,Enola,PA 36 Creekside Drive,Enola,PA 406 Fairview Avenue,Enola,PA 502 State Street,Enola,PA 224-226 Lincoln Street,Marysville,PA (collectively,the"Property")including future improvements erected thereon and placed therein as collateral for this Loan;An assignment of rents and leases will be recorded for the Property 9. Appraisal Complete appraisals of the Property,performed by a certified appraiser approved by Lender,will be required for this Loan;The appraised value must equal or exceed$1,750,000,otherwise this Commitment may become null and void at the Lender's sole discretion; If the appraised value of the Property is lower than $1,750,000 then Lender may lower the loan amount.to equal 80% of the appraised value at its sole discretion;The loan amount will not exceed 80%of the appraised value of the Property;The appraisals must be satisfactory to Lender and Property must in a condition acceptable to Lender; If reappraisal of the Property should be required by Lender in the future Borrower agrees to pay for the appraisal; Borrower is responsible for the cost of the appraisals,$6,300; Borrower may pay the appraisal cost to Lender in installments of$2,100; The first installment must be paid to Lender at acceptance of this Commitment; The second installment must be paid to Lender when the appraiser's physical inspection of the Property is complete; The final installment must be paid to Lender at settlement or delivery of appraisals to Borrower(s) 10. Prepayment The Loan may be prepaid in any amount at any time without penalty on the loan Chinniah-July 2012 2 11. Loan Documents : All documents pertaining to the closing of the loan including,but not limited to,the Promissory Note,Mortgage(s),Business Loan Agreement,Assignment of Rents&Leases and all other contracts/documents for closing must be prepared and executed satisfactorily to the Lender and their legal counsel's standards;All obligations shall be secured by cross default provisions and personal guarantees;Borrower(s)agrees to sign an Assignment of Rents and Leases Agreement for the Property 12.Ownership Change : In the event the Borrower(s)shall by sale or by operation of law, cause or allow the title or ownership of the Property herein required to be pledged as collateral for the loan become vested in any other entity or persons other than Borrower(s),including but not limited to,by means of sale,trade,acquisition or merger;the entire balance due hereunder shall,without demand,at the option of the Lender becomes due and payable 13. Financial Information : Borrower(s)shall furnish annually to Lender within 90 days of the applicable filing date personal tax returns;Borrower(s)shall furnish a personal financial statement and rent/roll forms to Lender annually upon presentation of the tax returns;At the request of the Lender,the Borrower(s)agree to supply the Lender with any additional personal or collateral information(i.e.copies of leases, etc.) 14.Adverse Change : 'The Borrower(s)will provide the Lender with immediate notice of any adverse change in Bonrower(s)'s financial condition and the Lender shall have the option,in its sole discretion,to cancel its commitment because of such adverse change 15. Warranties : The Borrower(s)warrants in Borrower(s)'s acceptance of this commitment that all financial information that Borrower(s)have submitted to the Lender is true and accurate at its time of submission and that there has been no material change; If any agreement,warranty,or representation is not true at the time it was made or at any time funding of the loan,the Lender may in its sole discretion cancel this Commitment Letter,either in whole or as to the remaining undisbursed fluids 16. Flood Insurance : Prior to closing,the Lender will obtain a flood certification for the Property;Any fee incurred will be charged to the Borrower(s);If the Property is determined to be in a flood zone the Borrower(s) agree to purchase flood insurance to cover the Property and collateral secured by the Loan Clikutiah—July 2012 3 17. Title Insurance Borrower(s)agree to furnish to the Lender a title insurance policy in the full amount of the loan with standard endorsements for a commercial type loan, issued by a title insurance company acceptable to the Lender and their legal counsel, identifying the Lender as the insured and mortgagee on the Property as outlined in the Collateral section above 18. Property Insurance The Borrower(s) will maintain fire and extended coverage insurance on the Property for the duration of the loan term satisfactory to the Lender; The Lender must be listed on the respective policy as first mortgagee;A certificate of insurance must be furnished to the Lender prior to settlement as a condition of closing 19. Hazards The Borrower(s)are responsible for compliance with all federal, state,and local environmental laws,regulations,and requirements 20. Fees Borrower(s)is responsible for payment of customary closing costs including,but not limited to, mortgage recording costs,appraisal costs,title insurance,attorney fees,documentation preparation costs,a loan origination fee of 1/2%, and other ordinary costs incurred by Lender or Agent in connection with this commitment including costs incurred at maturity(i.e. mortgage satisfaction costs,etc.) 21. Taxes Borrower(s)agree to have all taxes including,but not limited to, real estate and school taxes paid up to date for the life of the loan 22. Deposit Relationship : Borrower(s)agree to establish and maintain its primary deposit relationship for the operation of the rental properties with Lender for the duration of the loan 23. loan Covenants Borrower(s)must maintain a minimum global debt service coverage ratio of 1,20:1.00 or the loan is callable 24. Release of Col lateral : Borrower and Lender agree that upon the sale of any portion of the Collateral/Property, Lender will release the lien on said property in exchange for the pay down of the outstanding Loan balance to an amount that leaves the Lender with a loan-to-value ratio equal to or lower than the ratio at time of loan origination;At no time can the outstanding loan balance exceed 80%of the Property value 25. Acceptance : This Commitment may be accepted by signing the original and returning it to the Lender within 10 days; The duplicate copy is for the Borrower(s)'s records and is to be retained in Borrower(s)'s Chinniah—July 2012 4 i �� • files;Loan settlement must occur within 60 days of the date herein otherwise this Commitment becomes null and void The terms and conditions of this Letter of Commitment shall survive the settlement of the loan until paid in full and shall be a part of the Promissory Note and Business Loan Agreement executed in conjunction herewith as though set forth in detail therein. Any modifications of this commitment shall be in writing and agreed to by all parties. Any default in the terms and conditions of this Commitment Letter shall be as between the parties hereto considered a default in the tarns of the Promissory Note. To the knowledge of the Borrower(s), no action. suit. or proceeding is pending or threatened wherein an unfavorable disposition could materially adversely affect the Lender or the Property. assets, operations, or financial condition of the Borrowcr(s). We at AmeriChoice federal Credit Union are pleased to extend this commitment to Gnatiaehandra M. and Suganthini Chinniah. We look torward to working with YOU in the future. Sincerely, Dallas J. Lulli VP Business Lending ACCEPTANCE OF COMMITMEN J' The undersigned hereby acknowledges receipt of the foregoing Commitmcnt this 2.,:7'_ day of�T.A c , 2012, and does hereby accept all of the terms, conditions and time limitations set to th in the Commitment by the execution of same. The proceeds oCthe loan(s). if any, made under this letter will be used exclusively for business purposes. Borrower(s): 13 Y: Gnanachandra)/I. Chinnialx, Individually By:__- ' ; _... L nth _. Sugainl Chinniah, Individually _. aaown,P M�.a.wegy atr•»Fatn' ..ww..�irNCMa.,ea�.._...__ .. _ .._._...,._.�._...... . GNANA CHiNNtAH �o ievs,a 6298 508 CAMP�HMI,PA 1701 , METRO BANK 40 3 130 L8461: SL 311,024 6 298 r =� + __.......r-_ ...._.,.._._..._-••,•,yS,CcV "�.iii7' :sir�fii{�.......�—_..........�_ -q 6oteu313 6298 GHANA CHINNIAH 506 ERFORD RD, 717-732.6273 CAMP HILL,PA 17011 &7(�'_/-�'+ Z z METRO BANK 1.0 3 130 18461: 5 1 3 140 A 4u' 6 298 aPi6lRti, 6321 bf1e N `A7 IMI �► sto C2 MgM BANK y' i:03130i1846l: Si 3 &16024 409 6321 r WIBW313 6359 GNANA C ii?-raH ���� �,,���7- 606 ERiQpD RD, 717.732.6273 �l rrin_3?�--+' CAMP 11111 PA 17011 � $ 16 ',.5•�'' METRO BANK 1:0313p 18461: 51 3140 24 4�' 6359 DETHLEFS-PYKOSH LAW GROUP, LLC Darrell C.Dethlefs* Of Counsel Michael J.Pykosh* 2132 Market Street John R.Logan** Bryan W.Shook Camp Hill,PA 17011 Paul D.Daggs Melanie L.Erb Phone: (717)975-9446 Lesia1Ste Heather N.Orisko Toll Free:(800)287-1202 Sherry L.Dickman* Charles J.Hartwell Fax: (717)975-2309 Crystal L.Mahoney Richard D.Hollingworth,Jr. E-mail: ddethiefs@aol.com Susan E.Disbrow www.dpiglaw.com Christopher J.Damone '„L(ceaad PA Titls Aeenu '*Admitud to the NJ&rr August 30,2012 Gregory R.Reed,Esquire Law Offices of Gregory R. Reed 3120 Parkvlew Lane Harrisburg,PA 17111 RE: Your Client: Gnanaehandra and Suprithini Chinniah My Client: AmeriChoiee Federal Credit Union Matter: Business loan Application Dear Attorney Reed: This letter is a follow up to our telephone conversation of August 28, 2012. Earlier this summer,your clients sought a business loan for the purpose of refinancing existing business debt. in connection with that business loan request, your client provided my client with information regarding property values. A copy of the document that your client provided my client is attached hereto as Exhibit"A"to this letter. On July 10, 2012, my client issued a conditional commitment letter to your client. That letter stated, "The loan is subject to(1)acceptance of this proposal; (2)compliance with all provisions hereof; (3)the statutory and other requirements by which AmerlChoice Federal Credit Union is governed; and, (4) the borrowers compliance with all the terms and conditions stated in this letter." Paragraph 9 of the conditional commitment letter states that a condition of the loan was, "Complete appraisals of the Property, performed by a certified appraiser approved by lender, will be required for this loan; The appraised value must equal or exceed $1,750,000, otherwise this Commitment may become null and void at the lender's sole discretion; if the appraised value of the Property Is lower than $1,750,000 then Lender may lower the loan amount to equal 80% of the appraised value at its sole discretion;The loan amount will not exceed 80%of the appraised valued of the Property;The appraisals White Rose Business Center 100 Lincoln Way East,Ste.C i E.Market Street,Ste.201 A Debt Relief Agency Chambersburg,PA 17201 York,PA 17401 The Dethlefs-Pykosh Law Croup, LLC— "Your Full Service Law Firm" must be satisfactory to lender and Property must in a condition acceptable to lender." (Emphasis Added.) It is clear that the loan was conditioned upon the appraisals that must be satisfactory to the Lender and that the properties must be in a condition acceptable to the lender. i am including herewith copies of the first ten (10) appraisals. To begin with, none of these properties appraised at values equal to the values stated by your client when making application for this business loan. In fact,a spreadsheet comparing the borrower's opinion of value with the appraised value on the first ten (10) properties demonstrates that there is a substantial difference of$233,000.00 in values. Many of these properties appraised at values significantly less than the borrower Indicated when he made application for this business loan. But more importantly and the key to the Credit Union's decision to not lend your client money is that the appraisals reflect substantial problems with the conditions of the properties. This letter will highlight some of these condition deficiencies. On the property located at 405 Fairview Avenue, the appraiser noted "evidence of deferred maintenance and obsolescence". (Emphasis Added.) On the property located at 493 State Street,the appraiser stated, "The subject property is considered to be In average to fair condition........Unit 2 is considered to be in fair condition;the bathroom flooring and interior paint show extensive deferred maintenance. Water stains are present on the ceiling file (See subject photo's). Unit #1's tenant indicated that the unit has roaches. Visible evidence was present." (Emphasis Added.) On the property located at 1120 Second Street,the appraiser noted,"the subject property is considered to be in average-fair condition......Unit 2 is considered to be in fair condition; the half bathroom (no value given), flooring and Interior paint_show extensive deferred maintenance. See Photographic Addenda." (Emphasis Added.) On the property located at 1439 Second Street,the appraiser noted,"Evidence of deferred maintenance and obsolescence with age in that repairs are needed along with refinishing......Bathrooms are considered to be in Fair to Average condition. See subject photos for deficiencies and areas in need of cleaning and repair." (Emphasis Added.) For the property located at 35 Creekside Drive, the appraiser noted, "The subject is considered to be in Fair Condition with many items needing refinishing or overhauling (flooring, cabinets, bathrooms and interior paint),deferred maintenance obvious shortening the life expectancy and increasing the effect- tive age also with a lack of exterior yard maintenance decreasing market appeal." (Emphasis Added.) it is clear from a review of these appraisals that the common theme running through all these appraisals is that these properties have significant condition deficiencies in the area of deferred maintenance. The appraisals are attached to this letter as Exhibit"B"for your reference. The AmerlChoice Federal Credit Union will be issuing a formal declination of credit to your client based on the expressed contingency in Paragraph 9 that the appraisals must be satisfactory to the Lender and the properties must be In condition acceptable to Lender. Your client has demanded a refund of the cost of the appraisals. Paragraph 20 of the conditional commitment letter states that the Borrower is responsible for the costs of the appraisal fees. And, finally, your client has threatened my client with litigation and has sent me an email asking if I would accept service. There is no question that the conditional commitment that your client agreed to, provided that the properties must be in a condition acceptable to the Lender. There Is also no question that the appraisals highlight significant deficiencies In the conditions of the properties. Should your client pursue litigation that is baseless and without any merit,then my client will certainly have a claim for the reimbursement of any attorney fees Incurred in defending meritless claims. Your client's threat of a lawsuit in an attempt to force the Lender to accept deficient collateral is outrageous and will be vigorously defended. If you wish to discuss these issues in further detail, I can always be contacted on my cell phone at(717) 443-2447 or at my office at(717)975-9446. Very tru y rs, Darre . ethlefs DCD:sId Enclosures cc: Dallas Zulli CERTIFICATE OF SERVICE The undersigned hereby certifies that on this 12`h day of March 2013, a true copy of the Amended Complaint was served by first-class mail,postage paid,upon the following: James J. Franklin,Esq. McNees Wallace&Nurick LLC 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 Gnanachandra Chinniah Suganthini Chinniah Date: 12 March 2013 CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a true and correct copy of the foregoing document was served by first-class mail, postage prepaid, upon the following: Gnanachandra Chinniah Suganthini Chinniah 506 Erford Road Camp Hill, PA 17011 ames J. Franklin Dated: March 28, 2013 FILED-OFFICr I- 4';'F THU- E PROTHONOTARY' 2013 APR -9 AM 11: 55 Carol Steinour Young I.D. No. 55969 CUMBERLAND COUNTY James J. Franklin PENNSYLVANIA I.D. No. 306458 McNees Wallace & Nurick LLC 100 Pine Street P.O. Box 1166 Attorneys for Defendants, AmeriChoice Harrisburg, PA 17108-1166 Federal Credit Union and Dallas J. Zulli (717) 232-8000 GNANACHANDRA CHINNIAH IN THE COURT OF COMMON PLEAS and SUGANTHINI CHINNIAH, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. NO. 2012-5469 AMERICHOICE FEDERAL CREDIT CIVIL ACTION - LAW UNION and DALLAS J. ZULLI, Defendants PRAECIPE FOR LISTING CASE FOR ARGUMENT TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter for the next Argument Court on May 10, 2013. 1. State the Matter to be Argued: Defendants' Preliminary Objections to Plaintiffs' Amended Complaint. 2. Identify all counsel who will argue the case: (a) For Plaintiff: Gnanachandra Chinniah, Pro Se, and Suganthini Chinniah, Pro Se, 506 Erford Road, Camp Hill, PA 17011. (b) For Defendant: James J. Franklin, Esquire, McNees Wallace & Nurick, LLC, 100 Pine Street, P.O. Box 1166, Harrisburg, Pennsylvania 17108. A419 I I, James J. Franklin, will notify all parties in writing within two days that this case has been listed for argument. 3. Argument Court Date: May 10, 2013. McNEES WALLACE & NURICK LLC r By Carol Steinour Young I.D. No. 55969 James J. Franklin I.D. No. 306458 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 (717) 237-5342 Attorneys for Defendants, AmeriChoice Federal Credit Union and Dallas J. Zulli Date: April 8, 2013 -2- GNANACHANDRA CHINNIAH, IN THE COURT OF COMMON PLEAS SUGANTHINI CHINNIAH, OF CUMBERLAND COUNTY, Plaintiffs, PENNSYLVANIA V. CIVIL ACTION—LAW AMERICAN CHOICE FEDERAL CREDIT UNION AND DALLAS J. ZULLI, /02-5q(o9 Defendants. No.0+2-- 9— IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFF'S AMENDED COMPLAINT ORDER AND NOW, this Z Y'day of June, 2013, upon consideration of Defendants' Preliminary Objections to Plaintiffs' Amended Complaint, and any response thereto, Defendants' Preliminary Objections are hereby sustained as follows: 1. Counts II and III of Plaintiffs' Amended Complaint are hereby dismissed with prejudice; 2. Dallas J. Zulli is dismissed with prejudice as a defendant in this matter; 3. Paragraphs 4—6 of the Amended Complaint are stricken with prejudice; and 4. The Prothontary is hereby directed to amend the caption to reflect the dismissal of Dallas J. Zulli as a defendant. BY THE COURT, Kevi . Hess, P.J. /nanachandra& Suganthini Chinniah _ Y, 506 Erford Road rn CU Camp Hill, Pa 17011 Plaintiffs N 3> cq CD /James J. Franklin, Esq. & Elizabeth S. Karnezos, Esq. ?>C3 .a 100 Pine Street C,- , P.O. Box 1166 r}, Harrisburg, PA 17108 < ' = For the Defendants � �X GNANACHANDRA CHINNIAH, IN THE COURT OF COMMON PLEAS SUGANTHINI CHINNIAH, OF CUMBERLAND COUNTY, Plaintiffs, PENNSYLVANIA V. CIVIL ACTION - LAW AMERICAN CHOICE FEDERAL CREDIT UNION AND DALLAS J. ZULLI, Defendants. No. 2012-549 IN RE: DEFENDANTS' PRELIMINARY OBJECTIONS TO PLAINTIFF'S AMENDED COMPLAINT BEFORE HESS P.J. and PLACEY J. OPINION and ORDER Before the court are the Preliminary Objections of the Defendants AmeriChoice Federal Credit Union(hereinafter"AmeriChoice") and Dallas J. Zulli (hereinafter"Zulli") (collectively "Defendants") to the First Amended Complaint filed by the pro se Plaintiffs, Gnanachandra and Suganthini Chinniah. (Prelim. Objs. to Pl's. Am. Compl., filed Apr. 1, 2013). Plaintiffs' First Amended Complaint contains three counts: at Count I, a claim of breach of contract; at Count II, a claim of fraud; and at Count III, a claim for violation of the Unfair Trade Practices and Consumer Protection Law(hereinafter"UTPCPL"). (First Am. Compl., filed Mar. 12, 2013). In their preliminary objections,the Defendants seek to have Counts 11 and III dismissed for failure of a pleading to conform to law or rule of court or inclusion of scandalous or impertinent matter pursuant to Pa.R.C.P. 1028 (a)(2) and legal insufficiency pursuant to of Pa.R.C.P. 1028 (a)(4); in the alternative,to the extent Counts 11 and III are not dismissed, seek a more specific pleading for Counts II and III pursuant to of Pa.R.C.P. 1028 (a)(2) and(a)(3); to have Defendant Zulli dismissed for legal insufficiency pursuant to of Pa.R.C.P. 1028 (a)(4); and to have Paragraphs four through six of the Plaintiffs' First Amended Complaint stricken and Plaintiffs sanctioned for the inclusion of scandalous or impertinent matter pursuant to Pa.R.C.P. 1028 (a)(2). (Prelim. Objs. to Pl's. Am. Compl., filed Apr. 1, 2013). Plaintiffs' First Amended Complaint can be summarized as follows: Plaintiffs, Gnanachandra and Suganthini Chinniah are adult individuals residing at 506 Erford Road, Camp Hill, Cumberland County, Pennsylvania 17011. (First Am. Compl., 11). AmeriChoice Federal Credit Union is a credit union operating at 2175 Bumble Bee Hollow Road, Mechanicsburg, Cumberland County, Pennsylvania 17055, among other locations. (First Am. Compl.,¶2). Dallas J. Zulli was vice president of business lending for AmeriChoice at all relevant times. (First Am. Compl., ¶3). In June of 2012, Plaintiffs submitted a proposal for a$400,000 loan to Defendant AmeriChoice. (First Am. Compl., ¶7). Subsequently, Plaintiffs completed AmeriChoice's credit application for a$400,000 loan with three residential rental properties that the Plaintiffs owned serving as collateral. (First Am. Compl., ¶ 8). On June 22, 2012, after issues arose about the loan meeting AmeriChoice's requirements, Defendant Zulli sent the Plaintiffs an email that discussed modifying the loan by increasing the loan amount and including additional properties as collateral. (First Am. Compl.,¶9). On June 25, 2012, Defendant Zulli emailed the Plaintiffs a spreadsheet that outlined a loan for $1,400,000 that included fifteen of the Plaintiffs' properties as collateral. (First Am. Compl.,¶ 10). On July 9, 2012, Plaintiffs submitted a new "Member Business Credit Application" for a$1,400,000 loan with those fifteen properties serving as collateral. (First Am. Compl.,¶12, Ex. 3). On July 10, 2012, Defendant Zulli furnished a commitment letter, which listed several terms and conditions, to the Plaintiffs for a$1,400,000 loan with the stated purpose of refinancing existing debt. (First Am. Compl.,114). Regarding appraisals,the commitment letter stated: 2 Complete appraisals.of the Property, performed by a certified appraiser approved by Lender, will be required for this Loan; The appraised value must equal or exceed $1,750,000, otherwise this Commitment may become null and void at the Lender's sole discretion; If the appraised value of the Property is lower than $1,750,000 than lender may lower the loan amount to equal 80% of the appraised value at its sole discretion; The loan amount will not exceed 80% of the appraised value of the Property; The appraisals must be satisfactory to Lender and Property must [sic] in a condition acceptable to Lender; If reappraisal of the Property should be required by Lender in the future Borrower agrees to pay for the appraisal; Borrower is responsible for the cost of the appraisals, $6,300; Borrower may pay the appraisal cost to Lender in installments of $2,100; The first installment must be paid to Lender at acceptance of the Commitment; The second installment must be paid to Lender when the appraiser's physical inspection of the Property is complete; the final installment must be paid to Lender at settlement or delivery of appraisals to Borrower(s) (First Am. Compl.,Ex. 4). The above cited portion of the commitment letter gives AmeriChoice discretion to lower the loan amount in the event that the appraisals would come in below the target of$1,750,000; however,the Plaintiffs seem to aver that Defendant Zulli represented that the loan would automatically be adjusted to a lower amount if the appraisals came in below $1,750,000 and that they were assured all fifteen appraisals would be completed before any decision was made on the loan..(First Am. Compl.,¶28). Regardless, the Plaintiffs signed the loan commitment letter and provided a check for$2,100 as the first installment of appraisal fees on July 20, 2012. (First Am. Compl.,¶ 15). Between July 30, 2012 and August 2, 2012, a real estate appraiser inspected the fifteen properties that were to be used as collateral for the loan; as a result, Plaintiff paid a second installment of$2,100 towards the appraisal fee. (First Am. Compl.,¶¶ 20, 21). On August 27, 2012, Defendant Zulli informed the Plaintiffs that ten appraisal reports were complete, the value of the properties that had reports completed were lower than expected, and the final installment of$2,100 needed to be paid so that the remaining reports could be completed and it could be determined if the target of$1,750,000 in value would be reached. (First Am. Compl., ¶22). The loan process was not continued, the Defendants did 3 not offer to lower the loan amount, and the final installment of$2,100 was not paid to the Defendants. (First Am. Compl.,¶24). On August 30, 2012, on behalf of the Defendants, Darrell C. Dethlefs, Esq. mailed the Plaintiffs and Gregory R. Reed, Esq., who was handling title work for the Plaintiffs, a letter that included copies of the first ten appraisals and stated that AmeriChoice intended to issue a formal declination of credit. (First Am. Compl., Ex. 5). The letter indicated that all completed appraisals came in at a value less than the value stated on the application, but that the key to AmeriChoice's decision not to lend to the Plaintiffs was that the appraisals revealed issues with regard to the condition of the properties that were to serve as collateral. (First Am. Compl., Ex. 5). The letter provided examples of the deficiencies that were stated in the appraisal reports. (First Am. Compl., Ex. 5). Additionally, the letter stated that Defendants would not be refunding the Plaintiffs the money they paid for the appraisals. (First Am. Compl., Ex. 5). Plaintiffs initially filed a Complaint on September 4, 2012. (Compl., filed Sept. 4, 2012). After which,this court dismissed the Complaint as legally insufficient and ordered that scandalous and impertinent language not be included in any amended pleadings. (Order of Court, filed Feb. 13, 2013). In their First Amended Complaint, Plaintiffs now seek reimbursement for $4,200 paid for appraisals, $1,685 spent on title searches and tax certificates,punitive damages, interest, and costs. (First Am. Compl., ad damnum clauses). Pursuant to Pennsylvania Rule of Civil Procedure 1028(a), preliminary objections may be filed by any party to any pleading on several limited grounds, including the following: (2) Failure of a pleading to conform to law or rule of court or inclusion of scandalous or impertinent matter; (3) Insufficient specificity in a pleading; (4) Legal insufficiency of a pleading (demurrer); 4 Pa.R.C.P. 1028(a)(2), (3), (4). The standard of review for preliminary objections in this Commonwealth is well-settled. Preliminary objections are properly granted only when, "based on the facts pleaded, it is clear and free from doubt that the complainant will be unable to prove facts legally sufficient to establish a right to relief."Mazur v. Trinity Area School Dist., 599 Pa. 232, 240-41, 961 A.2d 96, 101 (2008) (internal citations omitted). In considering preliminary objections, "all well-pleaded allegations and material facts averred in the complaint, as well as all reasonable inferences deducible therefrom, must be accepted as true." Wurth by Wurth v. City of Philadelphia, 136 Pa. Cmwlth. 629, 638, 584 A.2d 403, 407(1990). However, the trial court "need not accept as true conclusions of law, unwarranted inferences from fact, argumentative allegations, or expressions of opinion." Penn Title Insurance Co. v. Deshler, 661 A.2d 481, 483 (Pa. Cmwlth. 1995). Initially, Defendants seek the dismissal of Count II, fraud, and Count III, violation of the UTPCPL,based on the "gist of the action" doctrine. The doctrine seeks to maintain the conceptual differences between breach of contract and tort claims. eToll, Inc. v. Elias/Savion Advertising, Inc., 2002 Pa. Super. 347, ¶ 14, 811 A.2d. 10, 14. "Tort actions lie for breaches of duties imposed by law as a matter of social policy, while contract actions lie only for breaches of duties imposed by mutual consensus agreements between particular individuals...." Bash v. Bell Tel. Co, 411 Pa. Super. 347, 356, 601 A.2d 825, 829 (1992) (citing Iron Mountain Sec. Storage Corp. v. American Specialty Foods, Inc., 457 F. Supp. 1158, 1165 (E.D. Pa. 1978)). "[A]lthough mere non-performance of a contract does not constitute a fraud, it is possible that a breach of contract also gives rise to an actionable tort. To be construed in tort, however,the wrong ascribed to the defendant must be the gist of the action,the contract being collateral."Id. at 355, 5 601 A.2d at 829 (internal citations omitted). More specifically, when applied to allegations of fraud: [w]here fraud claims are intertwined with breach of contract claims and the duties allegedly breached are created and grounded in the contract itself, the gist of the action is breach of contract. Thus, claims of fraud in the performance of a contract are generally barred under the gist of the action doctrine. Hart v. Arnold, 2005 Pa. Super. 328,¶43, 884 A.2d 316, 340 (internal citations and quotations omitted). Likewise, claims are commonly barred if the contract at issue is fully integrated. The rationale for this rule of law is "that a party cannot justifiably rely upon prior oral representations" and then sign a contract containing terms that refute the alleged prior oral representations. Thus, when prior fraudulent oral misrepresentations are alleged regarding a subject that was specifically dealt with in a written contract, the party alleging such representations must, under the parol evidence rule, also aver that the representations were fraudulently or by accident or mistake omitted from the integrated written contract. Id. at¶44, 884 A.2d at 340. We start our discussion with the Defendants' gist of the action argument as it applies to Plaintiffs' fraud claim. The commitment letter that the Plaintiffs signed goes into detail regarding the contingencies related to the appraisals. It is clear that the properties used as collateral must be "in a condition acceptable to the Lender." Furthermore,the commitment letter states that if the appraised value is less than $1,750,000 the'commitment becomes void and the Defendants have the sole discretion to approve the loan at a lower loan amount. It appears the Plaintiffs are alleging that representations were made to them that are contrary to the language of the commitment letter; specifically, that the work regarding all fifteen appraisals would be completed before a decision was made and that the loan would be still be approved,just for a lower amount, if the appraisals came in below$1,750,000. It is clear that the duties that are alleged to have been broken are grounded in the commitment letter itself. In the commitment letter, condition nine,titled "Appraisal,"addresses the relevant agreement and duties. As such, 6 the essence of the claim lies in the commitment letter that governs the parties' relationship. Furthermore,while the duties concerning the alleged misrepresentations are specially dealt with in the commitment letter, Plaintiffs make no averment that the Defendant Zulli's alleged contrary representations were fraudulently, accidently, or mistakenly omitted from the commitment letter. As such, we find that the Plaintiffs' fraud claim is subsumed by their breach of contract.claim, the relevant duties being grounded in the commitment letter itself. For these reasons, Defendants' first preliminary objection will be sustained as to Count II, fraud. Defendants would also have this court dismiss Plaintiffs' UTPCPL claim under the gist of the action doctrine. We agree with Defendants that the UTPCPL's underlying foundation is fraud prevention. Commonwealth v. Monumental Properties, Inc., 459 Pa. 450, 459, 329 A.2d 812, 816 (1974). However, we have found no Pennsylvania court that has barred a UTPCPL claim on the basis of the gist of the action doctrine.See Spruce Street Properties, Ltd. v. Noblesse, 2011 Wt 4368398, 11 (W.D. Pa.) (Recognizing no precedential support for applying gist of action doctrine to UTPCPL and declining to do so since claim was barred on other grounds). Finding no authority on the issue, and because we will dismiss the claim on other grounds, the first preliminary objection as it applies to Count III, UTPCPL is overruled. Thus, we turn to Defendants' preliminary objection that Count III should be dismissed pursuant to Pa.R.C.P. 1028(a)(2) and(a)(4) since the loan in question was a business loan and the UTPCPL only applies to personal, family, or household goods and services. The UTPCPL states: Any person who purchases or leases goods or services primarily for personal, family or household purposes and thereby suffers any ascertainable loss of money or property, real or personal, as a result of the use or employment by any person of a method, act or practice declared unlawful by section 3 of this act, may bring a private action to recover actual damages.... 7 Unfair Trade Practice and Consumer Protection Law, 73 PA. STAT. ANN. §201-9.2(a) (emphasis added). When considering whether a purchase was primarily for personal, family or household purposes, "the act addresses itself solely to the purpose of the purchase, not the type of product purchased." Valley Forge Towers South Condominium v. Ron-Ike Foam Insulators, Inc., 393 Pa. Super, 339, 352, 574 A.2d 641, 648 (1990), order aff d 529 Pa. 512, 605 A.2d 798 (1992). Here,the Plaintiffs make the general averment that the loan was intended for personal or family purposes. In support of which, in their brief, Plaintiffs claim that they planned on using the loan to consolidate consumer credit card debts,that the rental properties that were used as collateral were owned"personally," and that one of the properties used as collateral was their primary residence. (Pls.' Mem. in Opp'n to Defs.' Prelim. Objs. to Pl's First Am. Compl., filed May 3, 2013). The'pleadings, however, belie this representation. The Plaintiffs themselves acknowledge that the AmeriChoice representative that they dealt with, Defendant Zulli, was the vice president of business lending. In addition,the application that the Plaintiffs attached as an exhibit to their First Amended Complaint unambiguously states that it is a"business credit application." (First Am. Compl., Ex. 3). Also, directly above the portion of the commitment letter that the Plaintiffs' signed it states, "The proceeds of the loan(s), if any, made under this letter will be used exclusively for business purposes." (First Am. Compl., Ex. 3). We are not persuaded that the Plaintiffs inclusion of their primary residence as collateral, along with several rental properties, somehow transforms the loan to a personal one. Accordingly, we will sustain Defendants' second preliminary objection to the UTPCPL claim. Next,Defendants seek by way of a demurrer,to have Defendant Zulli removed for the failure to state a cause of action against him. A demurrer is "an assertion that a complaint does 8 not set forth a cause of action or a claim on which relief can be granted."Lerner v. Lerner, 2008 Pa. Super. 183,¶ 11, 954 A.2d 1229, 1234 (internal citations omitted). If any theory of law will support the claim raised by the complaint, dismissal is improper. Slaybaugh v. Newman, 330 Pa. Super. 216, 220,479 A.2d 517, 519 (1984). Upon finding that Counts II and III should be dismissed, only Count I,breach of contract, remains. In establishing their breach of contract claim, Plaintiffs maintain that Defendant AmeriChoice stopped the loan process and refused to offer a loan for a smaller amount. Additionally, in the ad damnum clause for the breach of contract count, Plaintiffs only seek damages from Defendant AmeriChoice. Since no claims are made against Defendant Zulli, and no averments are alleged supporting any, we order Defendant Zulli be dismissed from the action. Finally, we lurn to the Defendants' preliminary objection for the inclusion of scandalous or impertinent matter. "To be scandalous and impertinent, a complaint's allegations must be immaterial and inappropriate to the proof of the cause of action." Commonwealth Dept of Envtl. Res. v. Peggs Run Coal Co., 55 Pa. Cmwlth. 312, 320, 423 A.2d 765, 769 (1980). In this Court's previous order concerning the Plaintiffs' original Complaint, it was noted that certain paragraphs were scandalous and impertinent, and it was ordered that such language was not to be used in any amended pleadings. Included in those paragraphs were averments concerning Defendant's Zulli's connection to East Pennsboro Township and allegations concerning a resulting conflict of interest. Similar information and allegations are contained in Plaintiffs First Amended Complaint in paragraphs four through six. We reaffirm our previous Order and sustain Defendants' preliminary objection that paragraphs four through six be stricken. However, we decline to impose sanctions at this time. 9 Y Furthermore, since preliminary objections have been granted dismissing Counts II and III there is no need to discuss Defendant's alternate theories at this time. ORDER AND NOW, this ZS/'day of June, 2013, upon consideration of Defendants' Preliminary Objections to Plaintiffs' Amended Complaint, and any response thereto, Defendants' Preliminary Objections are hereby sustained as follows: 1. Counts II and III of Plaintiffs' Amended Complaint are hereby dismissed with prejudice; 2. Dallas J. Zulli is dismissed with prejudice as a defendant in this matter; 3. Paragraphs 4—6 of the Amended Complaint are stricken with prejudice; and - r 4. The Prothontary is hereby directed to amend the caption to reflect the dismissal of Dallas J. Zulli as a defendant. BY THE COURT, Kevin ess, P.J. 10 GNANACHANDRA CHINNIAH and IN THE COURT OF COMMON PLEAS SUGANTHINI CHINNIAH, OF CUMBERLAND COUNTY, Plaintiffs, PENNSYLVANIA V. CIVIL ACTION - LAW AMERICHOICE FEDERAL CREDIT UNION and DALLAS J. ZULLI, Defendants. No. 2012-5469 ORDER AND NOW, this :3 1 day of July, 2013, this Order amends the caption of the June 24, 2013 Order and Opinion to the above stated caption. BY THE COURT, Kevin ess, P.J. :=M rr wt— CD, G�nanachandra& Suganthini Chinniah Ila = CD 506 Erford Road C:) Camp Hill, Pa 17011 -4 Plaintiffs < �James J. Franklin,Esq. &Elizabeth S. Kamezos,Esq. 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108 For the Defendants I-es ma at 7/ /�3 i il_LTC-�? !i 01 F THE PR 0"HI 0 N 0 I-A R 170113 JUL 15 AN I I: 3 James J. Franklin CUMBERLAND COUNTY I.D. No. 306458 PENNSYLVANIA Elizabeth S. Karnezos I.D. No. 309234 McNees Wallace &Nurick LLC 100 Pine Street P.O. Box 1166 Attorneys for Defendant Harrisburg, PA 17108-1166 (717) 232-8000 GNANACHANDRA CHINNIAH and IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION—LAW AMERICHOICE FEDERAL CREDIT UNION Defendant No. 2012 - 5469 NOTICE TO PLEAD To: Gnanachandra Chinniah and Suganthini Chinniah: You are hereby notified to file a written response to the enclosed New Matter with twenty (20) days from service hereof or a judgment may be entered against you. MCNEES WALLACE&NURICK B Y Jatnes J. Franklin I.D. No. 306458 Elizabeth S. Karnezos I.D. No. 309234 100 Pine Street, P.O. Box 1166 Harrisburg, PA 17108-1166 Phone: 717 232-8000 Date: July 12, 2013 Email: jfranklin @mwn.com James J. Franklin I.D. No. 306458 Elizabeth S. Kamezos I.D. No. 309234 McNees Wallace &Nurick LLC 100 Pine Street P.O. Box 1166 Attorneys for Defendant Harrisburg, PA 17108-1166 (717) 232-8000 GNANACHANDRA CHINNIAH and IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH, CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION—LAW AMERICHOICE FEDERAL CREDIT UNION Defendant No. 2012 - 5469 DEFENDANT'S ANSWER WITH NEW MATTER TO PLAINTIFFS' AMENDED COMPLAINT Defendant, AmeriChoice Federal Credit Union ("AmeriChoice"), by and through its attorneys, McNees Wallace &Nurick LLC, hereby submits the following Answer to the Amended Complaint filed by Plaintiffs Gnanachandra Chinniah and Suganthini Chinniah (collectively, "Plaintiffs"). In support thereof, Defendant avers as follows: ANSWER 1. Admitted. 2. Admitted. 3. Admitted that Dallas Zulli ("Zulli") is the vice president of business lending at AmeriChoice. By way of further answer, the Court dismissed with prejudice Zulli as a named Defendant in this action by Order dated June 24, 2013; therefore, this paragraph has no relevance to the current proceeding. 4. This paragraph was stricken with prejudice by Order of Court dated June 24, 2013, and thus no response is required. 5. This paragraph was stricken with prejudice by Order of Court dated June 24, 2013, and thus no response is required. 6. This paragraph was stricken with prejudice by Order of Court dated June 24, 2013, and thus no response is required. 7. Denied. This paragraph references a document, which is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. 8. Denied. This paragraph references a document, which is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. 9. Denied. This paragraph references a document, which is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. By way of further answer, it is admitted that Zulli sent an email to Plaintiff Gnanachandra Chinniah dated June 22, 2012, which Plaintiffs attached as part of Exhibit 1 to their Amended Complaint. 10. Denied. This paragraph references a document, which is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. By way of further answer, it is admitted that Zulli sent an email to Plaintiff Gnanachandra Chinniah dated June 25, 2012, which Plaintiffs attached as part of Exhibit 1 to their Amended Complaint. 11. Denied. This paragraph references a document, which is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. By way of further answer, it -2- is admitted that Zulli sent an email to Plaintiff Gnanachandra Chinniah dated July 6, 2012, which Plaintiffs attached as part of Exhibit 2 to their Amended Complaint. 12. Denied. Plaintiffs executed a"Member Business Credit Application," which Plaintiffs attached as Exhibit 3 to their Amended Complaint. The Member Business Credit Application is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. By way of further answer, this paragraph contains conclusions of law to which no response is required. To the extent that a response is required, after reasonable investigation, AmeriChoice is without knowledge or information sufficient to form a belief as to the truth of the remaining averments of paragraph 12, and the same are therefore denied. Count I—Breach of Contract 13. Defendant AmeriChoice incorporates paragraphs 1 through 12 of this Answer as if set forth in full. 14. Admitted in part and denied in part. AmeriChoice admits that Exhibit 4 to Plaintiffs' Amended Complaint is a"commitment letter" addressed to Plaintiffs from Zulli dated July 10, 2012. AmeriChoice further admits that Section 3 of the commitment letter states "Purpose of Loan: Refinance existing debt," and that pursuant to paragraph 14 of their Amended Complaint, Plaintiffs incorporated all terms of the commitment letter into their Amended Complaint. By way of further answer, pursuant to Section 9 of the commitment letter, "The appraisals must be satisfactory to Lender and Property must in a condition acceptable to Lender" and"Borrower is responsible for the cost of the appraisals, $6,300 . . . ." Pursuant to Section 15 of the commitment letter, "If any agreement, warranty, or representation is not true at the time it was made or at any time funding of the loan,the Lender may in its sole discretion cancel this -3- Commitment Letter, either in whole or as to the remaining undisbursed funds." Pursuant to Section 20 of the commitment letter, "Borrower is responsible for payment of customary closing costs, including but not limited to, mortgage recording costs, appraisal costs, title insurance, attorney fees, document preparation costs, a load origination fee of 1/2%, and other ordinary costs incurred by Lender or Agent in connection with this commitment . . . ." As to the remaining averments, this paragraph references a document, which is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. 15. Admitted that Plaintiffs signed the Commitment Letter dated July 20, 2012, as reflected in Exhibit 4 to the Amended Complaint. By way of further answer, Plaintiffs signed the letter in a section labeled "Acceptance of Commitment"that, by signing, indicated Plaintiffs' acceptance of all terms, conditions and time limitations set forth in the letter. AmeriChoice also admits that Exhibit 4 to the Amended Complaint includes a check addressed to "AmeriChoice" dated July 20, 2012, in the amount of$2100.00, and which represents a payment by Plaintiffs toward the appraisal costs under the terms of the Commitment Letter. 16. Denied. Paragraph 16 contains conclusions of law to which no response is required. 17. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 17, and the same are therefore denied. 18. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 18, and the same are therefore denied. -4- 19. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 19, and the same are therefore denied. 20. Admitted in part and denied in part. AmeriChoice admits that the independent appraiser conducted inspections of the fifteen collateral properties identified in the Commitment Letter. After reasonable investigation, AmeriChoice is without knowledge or information sufficient to form a belief as to the truth of the remaining averments of paragraph 20, and the same are therefore denied. 21. Denied as stated. AmeriChoice admits that Exhibit 4 to the Amended Complaint includes a check addressed to "AmeriChoice" dated August 8, 2012, in the amount of$2100.00, and which represents a payment by Plaintiffs toward the appraisal costs under the terms of the Commitment Letter. 22. Denied. AmeriChoice, through Zulli, determined that the appraisals were not satisfactory to AmeriChoice and that the properties in question were not in conditions acceptable to AmeriChoice. AmeriChoice communicated these facts to Plaintiffs, at which time Plaintiffs demanded a refund of the appraisal fees. After reasonable investigation, AmeriChoice is without knowledge or information sufficient to form a belief as to the truth of the remaining averments of paragraph 22, and the same are therefore denied. 23. Denied. This paragraph references a document, which is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. 24. Denied. Paragraph 24 contains conclusions of law to which no response is required. To the extent a response is required, AmeriChoice specifically denies the allegations of -5- this paragraph. By way of further answer, pursuant to Section 9 of the commitment letter, "The appraisals must be satisfactory to Lender and Property must in a condition acceptable to Lender" and "Borrower is responsible for the cost of the appraisals, $6,300 . . . ." Pursuant to Section 15 of the commitment letter, "If any agreement, warranty, or representation is not true at the time it was made or at any time funding of the loan, the Lender may in its sole discretion cancel this Commitment Letter, either in whole or as to the remaining undisbursed funds." Pursuant to Section 20 of the commitment letter, "Borrower is responsible for payment of customary closing costs, including but not limited to, mortgage recording costs, appraisal costs, title insurance, attorney fees, document preparation costs, a load origination fee of/2%, and other ordinary costs incurred by Lender or Agent in connection with this commitment . . . ." 25. Admitted in part and denied in part. AmeriChoice admits that Darrell C. Dethlefs drafted a letter on AmeriChoice's behalf to a Mr. Gregory R. Reed, Esquire, dated August 30, 2012, which Plaintiffs attached as Exhibit 5 to their Amended Complaint. As to the remaining allegations, this paragraph references a document, which is a writing that speaks for itself, and AmeriChoice denies Plaintiffs' characterization thereof. 26. Denied. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments of paragraph 26, and the same are therefore denied. By way of further answer, pursuant to Section 20 of the commitment letter, "Borrower is responsible for payment of customary closing costs, including but not limited to, mortgage recording costs, appraisal costs, title insurance, attorney fees, document preparation costs, a load origination fee of'/2%, and other ordinary costs incurred by Lender or Agent in connection with this commitment . -6- WHEREFORE, Defendant AmeriChoice Federal Credit Union requests that this Court dismiss with prejudice Plaintiffs' Amended Complaint and award Defendant costs of suit, and all other relief that the Court deems appropriate. Count II and Count III 27-44. Count II and Count III of Plaintiffs' Amended Complaint, including Paragraphs 27 through 44 and the demands for relief thereto, were stricken with prejudice by Order of Court dated June 24, 2013, and thus no response is required. NEW MATTER 45. Defendant AmeriChoice incorporates its answers to Paragraphs 1 through 44 as if set forth fully herein. 46. Plaintiffs' Amended Complaint fails to state a claim for which relief can be granted. 47. Plaintiffs' Amended Complaint fails to state a claim against AmeriChoice for breach of contract. 48. Plaintiffs' voluntarily executed the conditional Commitment Letter between Plaintiffs and AmeriChoice, attached as part of Exhibit 4 to Plaintiffs' Amended Complaint. 49. Under Section 9 of the conditional Commitment Letter, "The appraisals must be satisfactory to Lender and Property must in a condition acceptable to Lender." See Am. Compl. Exh. 4, ¶9. 50. Under Section 9 of the conditional Commitment Letter, "Borrower is responsible for the cost of the appraisals, $6,300 . . . ." See Am. Compl. Exh. 4, ¶ 9. -7- 51. Under Section 15 of the conditional Commitment Letter, "If any agreement, warranty, or representation is not true at the time it was made or at any time funding of the loan, the Lender may in its sole discretion cancel this Commitment Letter, either in whole or as to the remaining undisbursed funds." See Am. Compl. Exh. 4, ¶ 15. 52. Under Section 20 of the conditional Commitment Letter, "Borrower is responsible for payment of customary closing costs, including but not limited to, mortgage recording costs, appraisal costs, title insurance, attorney fees, document preparation costs, a load origination fee of 1/2%, and other ordinary costs incurred by Lender or Agent in connection with this commitment . . . ." See Am. Compl. Exh. 4, ¶20. 53. Pursuant to the terms of the conditional Commitment Letter, Plaintiffs are solely responsible for all appraisals fees associated with the conditional Commitment Letter and Plaintiffs' collateral properties. 54. Pursuant to the terms of the conditional Commitment Letter, Plaintiffs are solely responsible for other costs, including but not limited to closing costs and other ordinary costs, incurred by Plaintiffs and/or any agents or representatives thereof in connection with the conditional Commitment Letter and Plaintiffs' collateral properties. 55. Plaintiffs agreed by executing the conditional Commitment Letter that they were solely responsible for all appraisal fees and costs. 56. Plaintiffs agreed by executing the conditional Commitment Letter that they were solely responsible for all closing costs and other ordinary costs, including but not limited to costs for title searches and tax certifications. -8- 57. Plaintiffs' only alleged damages are for $4,200 in appraisal fees and for $1,685.00 in costs for title searches and tax certifications. 58. The terms of the conditional Commitment Letter prevent Plaintiffs from recovering the appraisal fees and costs for title searches and tax certifications sought as damages in this matter. McNEES WALLACE &NURICK LLC By. James—p. Franklin I.D. No. 306458 Elizabeth S. Karnezos I.D. No. 309234 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Phone: 717 232-8000 Fax: 717 237-5300 Email: jfranklin @mwn.com Dated: July 12, 2013 Attorneys for Defendant -9- VERW ICATION 1, Dallas Zulli, Vice President of Business Lending of AmeriChoice, Defendant in the within action, verify that the statements made in the foregoing document are true and correct to the best of my knowledge, information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. §4904, relating to unsworn falsification to authorities. 1 M _ ✓ . —Da u l i Dated: July lag , 2013 CERTIFICATE OF SERVICE The undersigned hereby certifies that on this date a true and correct copy of the foregoing document was served by first-class mail, postage prepaid, upon the following: Gnanachandra Chinniah Suganthini Chinniah 506 Erford Road Camp Hill, PA 17011 Eliz eth S. Karnezos Dated: July 12, 2013 Ti t`EQ 2013/1 UG — PH 2 n ENIgSyLV, r©ter iY GNANACHANDRA CHINNIAH and IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH CUMBERLAND COUNTY, Plaintiffs PENNSYLVANIA V. CIVIL ACTION LAW AMERICHOICE FEDERAL CREDIT UNION No. 2012-5469 Defendants PLAINTIFFS' MOTION TO EXTEND TIME TO FILE REPLY FOR NEW MATTERS NOW COMES Plaintiffs, Gnanachandra Chinniah and Suganthini Chinniah, and file this Motion to Extend Time to file Reply for Defendants' New Matters and in support thereof avers as follows: 1. On July 12, 2013 Defendants filed their answers and New Matters to Plaintiffs' Amended Complaint related to Breach of Contract Claims 2. Plaintiff Gnana Chinniah has undergone a surgery and hospitalization during the month of July 2013 and did not have a fair amount of time to effectively file a reply to Defendants Reply and New Matters in light of the recent appraisals and market values of subject properties of Plaintiffs to provide correct information to this Honorable Court 3. Defendants indicated"we do not anticipate any issue in concurring to a 30-day extension time for you to file a reply to Defendant's New Matter" (Exhibit A: Emails to Plaintiff) WHEREFORE,the Plaintiffs respectfully requests that this Honorable'Court enter an Order granting 30-day extension to file their Reply to Defendants' New Matters. Respectfully Submitted, Gnanachandra Chinniah Suganthini Chinniah Plaintiffs 506 Erford Road Camp Hill, PA 17011 (717) 732 6273 or(717) 979 9245 Date: August 5, 2013 2 GNANACHANDRA CHINNIAH and IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH CUMBERLAND COUNTY, Plaintiffs PENNSYLVANIA V. CIVIL ACTION LAW AMERICHOICE FEDERAL CREDIT UNION No. 2012-5469 Defendants PLAINTIFFS' MOTION TO EXTEND TIME TO FILE REPLY FOR NEW MATTERS NOW COMES Plaintiffs, Gnanachandra Chinniah and Suganthini Chinniah, and file this Motion-to Extend Time to file Reply.for.Defendants' New Matters and in support thereof avers as follows: 1. On July.12, 2013 Defendants filed their answers and New Matters to Plaintiffs' Amended Complaint related to Breach of Contract Claims 2. Plaintiff Gnana Chinniah has undergone a surgery and hospitalization during the month of July 2013 and did not have a fair amount of time to effectively file a reply to Defendants Reply and New Matters in light of the recent appraisals and market values of subject properties of Plaintiffs to provide correct information to this Honorable Court 3. Defendants indicated "we do not anticipate any issue in concurring to a 30-day extension time for you to file a reply to Defendant's New Matter" (Exhibit A: Emails to Plaintiff) WHEREFORE,the Plaintiffs respectfully requests that this Honorable Court enter an Order granting 30-day extension to file their Reply to Defendants' New Matters. I EXHIBIT'A pil G ikri �s i Outlook-chinniahg @hotmail.com Page 1 =11 ME ME11 mow, Search email RE- Chinniah v Americhoice Folders N, Franklin,James(1Frankli @mwn.com) Add to contacts 12:01 PM ; Inbox 247 To:Gnana Chinniah Cc:Karnezos,Liz,Jerome,Christopher R Junk Drafts 40 From:Franklin,James(JFrankli @mwn.com) Sent Tue 7/23/13 12:01 PM Sent To: Gnana Chinniah(chinniahg @hotmaiI.com) Deleted Cc: Karnezos,Liz(Iarnezos @mwn.com);Jerome,Christopher(CJerome @mwn.com) 173 E.Penn Mr.Chinniah, Sales 120 N 2nd St. Dec2003 Please forward to us a draft copy of your proposed motion for extension of time. While we do not anticipate any issue in — 506 Erford concurring to a 30-day extension of time for you to file a reply to Defendant's New Matter,we will need to review the Refi2003 proposed motion first. 576-580 Louther St Refi Linden Ave Refi Asfor your inquiry regarding settlement,in light of the Court's recent Order regarding the Preliminary Objections,we 2004 submit that it is appropriate for you to first propose a revised settlement demand. I will then promptly review any such Needy Families demand with my client. Needy Families December 31 New folder Regards, Quick Jim Documents 14 Flagged Photos 7 James J.Franklin Shipping McNees Wallace&Nurick LLC updates Office Phone: 717.237.5375 New category From:Gnana Chinniah[mailto:chinniahg @hotmail.com] Sent:Tuesday,July 23,2013 10:07 AM To: Franklin,James, dzulli @americhoice.org Subject: Chinniah v Americhoice i i Dear Mr. Franklin: h s: As I went through another medical procedure and hospitalization due to infections recently, I intend to file for , ttP Outlook-chinniahg @hotmail.com Page 1 N ' _AAA sE 6���11��4.e'S S� I� ' .\''� �I`� � � �� • - •F: -•• - � Ana Search We We can't connect to Outlook right now.Please make sure that you're connected to t I - A Folders Chinniah v Americhoice 1� y x Inbox 245 Gnana Chinniah 10:07 AM Junk To:jfranklin @mwn.com,dzulli @americhoice.org e Drafts 40 Sent Dear Mr.Franklin: Deleted 173 E.Penn As I went through another medical procedure and hospitalization due to infections recently,I intend to file fora 30 day Sales extension to file my reply to Defendants'Answers that need some appropriate response. Given the fact there are most recent sale data and market price information for multiple properties of mine for which Americhoice's appraiser came up 120 N 2nd St. with substantially lower market values or did NOT even complete their appraisals,it is crucial I provided those"Correct Dec2003 Information"to the Honorable Court to prove my claim that Americhoice FCU purposely manipulated the market values. 506 Erford Ref12003 For example,one of my single family house at 36 Creekside Drive in Enola'was sold for the FULL LIST PRICE of$122,000 576-580 on July 15,2013 for which Americhoice's Appraisal was just$80,000. In addition,the actual appraised value in July 2013 Louther St Refi was$126,000 which is$4,000 over the sale price. Similarly,another 4-Unit Townhouse at 4600-4608 Linden ave was listed for$319,900 in March 2013 for which I got an offer for$300,000 within a week after it was listed;and I rejected Linden Ave Refi the offer as the market value of that property is very close to or above$320,000. Although I stated the conservative 2004 market price as$300,000 for this property in my loan application to Americhoice,they did NOT even complete the Needy Families appraisal for two(2)4-unit properties including this one and 3 other single family home including my primary residence, and projected a grand total taht was shy of the target value of$1.75 Million in an attempt to deny the$1.4 Million loan. Needy Families All these new market values in addition to other independent appraisals/market analyses for the remaining properties December 31 would be documented to the Court to rebut the Defendants'misrepresentation and their Verified Answers. In addition, New folder Plaintiffs'Requestfor Production of Documents and Interrogatories will also include all the loan applications Americhoice FCU Approved and Denied dating back to at least last 5 years from July 2012 so we can can carefully evaluate our other Counts including Equal Protection violations under Federal Laws. Please remember that I have a better chance at the QUICK Federal Court. Documents 14 Flagged I strongly believe that you will concur with my pending motion for additional time for Plaintiffs to file their reply brief for New Matters and look forward to receive a reply in the near future if you want to discuss to settle this matter ASAP. Photos 7 Shipping updates Yours Very Truly, New category Gnana Chiniah https: CERTIFICATE OF SERVICE AND NOW, this 5t' day of August 2013, I, Gnanachandra Chinniah, do hereby certify that I have this day served by first class mail a copy of the attached PLAINTIFFS'MOTION TO EXTEND TIME TO FILE REPLY TO NEW MATTERS to the following address: James J. Franklin, Esquire McNEES WALLACE &NURICK LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Gnanachandra Chinniah 506 Erford Road Camp Hill, PA 17011 PROTHOFjo iA.tj'{ 1113 SEP -4 UM~ SERLAND CUUNTY PENNSYLVANIA GNANACHANDRA CHINNIAH and IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH CUMBERLAND COUNTY, Plaintiffs PENNSYLVANIA V. : CIVIL ACTION LAW AMERICHOICE FEDERAL CREDIT UNION No. 2012-5469 Defendants PLAINTIFFS' REPLY TO DEFENDANTS' ANSWER AND NEW MATTER NOW COMES Plaintiffs, Gnanachandra Chinniah and Suganthini Chinniah, and file this Reply to Defendants' Answer and New Matter and in support thereof avers as follows: 16-26. Defendants' Answers to these paragraphs are very misleading and deceptive. Plaintiffs will be able to provide strict proof during trial to rebut Defendants' verified answers in light of actual sale price,recent appraisals and market values of subject, properties of Plaintiffs that will confirm that Defendants in fact breached the contract. 46. Plaintiffs deny that their Amended Complaint fails to state a claim upon which relief may be granted. 47. Plaintiffs deny that their Amended Complaint fails to state a claim against AmeriChoice for Breach of Contract. 48-56. Plaintiffs strongly disagree with Defendants' answers to these paragraphs that are very deceptive and misleading based on actual sale price and recent market values. In addition, Plaintiffs will provide strict proof during trial to rebut defendants' answers and to establish that Defendants in fact breached the contract and manipulated the appraisals in an attempt to deny the original loan amount or even a reduced amount. 57-58. Plaintiffs will be able to provide strict proof during trial to establish that they are entitled to recover damages for$4,200 in appraisal fees, $1,685 in title search and tax certifications and all costs and expenses related to this suit. WHEREFORE,the Plaintiffs respectfully request that this Honorable Court enter judgment in their favor granting interest,cost and such other relief as this Honorable Court deems just and equitable. Respectfully Submitted, Gnanachandra Chinniah Suganthini Chinniah Plaintiffs 506 Erford Road Camp Hill, PA 17011 (717) 732 6273 or(717) 979 9245 Date: September 4,2013 2 CERTIFICATE OF SERVICE AND NOW, this 4t' day of September ' 2013, I, Gnanachandra Chinniah, do hereby certify that I have this day served by first class mail a copy of the attached PLAINTIFFS' REPLY TO DEFENDANTS'ANSWERS AND NEWMATTER to the following address: James J. Franklin, Esquire McNEES WALLACE &NURICK LLC 100 Pine Street P.O. Box 1166 Harrisburg, PA 17108-1166 Gnanachandra Chinniah 506 Erford Road Camp Hill, PA 17011 GNANACHANDRA CHINNIAH and : IN THE COURT OF COMMON PLEAS OF SUGANTHINI CHINNIAH, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs v. : CIVIL ACTION-LAW 2 ; : c, *r, AMERICHOICE FEDERAL CREDIT �' UNION -� ,., Defendant : No. 2012 - 5469 c.nr r . 3,---,. rte- .4- O --i d C7--t c ' -4 � 2:. PRAECIPE TO DISCONTINUE Co-``- �,i TO THE PROTHONOTARY: Please discontinue the above-captioned action WITH prejudice. Gnanachandra Chinniah Suganthini Chinniah Pro-se Plaintiffs